• Sunday, Nov 28, 2021
  • Last Update : 03:03 pm

Modi's plan to get millions more Indians flying faces turbulence

  • Published at 08:00 pm June 11th, 2018
2018-06-11_INDIA-AVIATION-INFRASTRUCTURE
GR Gopinath, founder and chairman of Bengaluru-based Air Deccan, poses next to a helicopter parked in a hangar after an interview with Reuters in Bengaluru, India, February 6, 2018 Reuters

Passenger traffic in India has grown at about 20% annually in recent years

The slow pace of fitting out regional airports risks delaying Indian Prime Minister Narendra Modi's ambitious plan to launch more flights connecting smaller towns and cities and get millions more people using air travel.

The program, flagged off by Modi last year, aims to boost economic growth by refurbishing idled colonial-era airstrips or building newer airports, and incentivizing airlines to offer discounted fares to connect them with bigger cities.

But work on building new airports in small towns and upgrading existing facilities has failed to keep pace, two government officials said, and could knock off course the government's lofty goal of bringing 100 million more passengers to the skies in the next five years.

Under Modi's "regional connectivity scheme," the government planned to open 31 new airports by the end of 2017, but only 16 are operational so far. Some states have said they do not have enough funds to purchase basic equipment such as mandatory fire tenders, one of the officials said.

In other cases it was taking longer than planned to build air traffic control towers or set up terminal buildings equipped with baggage scanners and security systems, said the official.

The federal government has now stepped in, and will procure much of the equipment itself and lease it to state governments to get the 15 remaining airports operational by end-June.

"It is a trade-off. We either keep adding more flights or calibrate the existing ones with the capacity we have," the official said.

The delays highlight the hurdles Modi - who has campaigned on his ability to successfully implement growth-boosting reforms - faces as he seeks re-election in 2019.

Making flying affordable

Passenger traffic in India has grown at about 20% annually in recent years, making the world's fastest-growing aviation market lucrative for large and small planemakers.

When launching the scheme in early 2017, the government said it wanted to make flying affordable for the common man wearing simple flip-flops by reviving more than 400 unused and under-utilised airstrips in the country's vast hinterlands.

The civil aviation ministry has given approvals, in two phases, to nearly a dozen airlines, including start-ups like Air Deccan and Air Odisha as well as established carriers like IndiGo, Jet Airways and SpiceJet, to start flights on more than 450 routes covering 56 new airports.

But with even the first phase still behind schedule - flights have begun on just 60 of the 128 planned routes - the government plans to delay the start of phase three, the two officials said.

Business impact

Air Odisha and Air Deccan complain that the problems are not confined to small airports - bigger ones such as Mumbai and Delhi are already choked and have few landing slots available.

Both carriers have acquired aircraft on lease but are yet to begin operations on more than 30 of the 40 regional routes they received approval for, making it difficult to generate enough revenue to staunch losses, officials at the airlines said.

"These airports are dragging their feet," said GR Gopinath, founder and chairman of Air Deccan.

Airports generally get more revenue when international or larger domestic flights land, bringing in more passengers who can pay for airport services. But most regional carriers operate small planes, with some having as few as 19 seats, and are also exempt from paying landing and parking charges under the scheme.


55
Facebook 55
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail