www.skpcrossborder.com March 2005
Your eye to India-centric and International updates
In the News

Indian Airports slated for a major makeover

Every airport, metro or non-metro, in India, is due to be given an international ambience with multiple runways and passengers will use only aerobridges to board planes and alight anywhere in the country. Delhi, which now has two runways, will have four and will handle traffic of upto 50 million passengers annually, five times its current figure of 10 million. Greenfield airports are being built in Bangalore by a Siemens-led consortium and in Hyderabad by the GMR group. The Delhi and Mumbai airports are slated to be modernised through privatisation. Kolkata and Chennai could be next in line.

On the anvil are developments such as:
  • Adding more runways, taxi and exit routes
  • Giving international touch to all airports
  • Developing city-facing land of 35 non-metro airports
The modernisation programme is estimated to cost Rs. 40,000 crore (US $ 8.9 bn). To provide funds for this investment, the Airports Authority of India (AAI), which owns these airports, will soon issue bonds. But since the funds required are huge, the government has decided to develop the city-facing land of the 35 airports, to bridge the gap. These lands will house new ventures in which private players will be offered a majority stake. The money so generated will go into the modernisation of these airports. The government has appointed two consortia, one led by Ernst & Young and the other by UTI Bank, to submit detailed reports on how best to develop city-facing land.

While renovating the airports, it has been decided to go in for modular designs so that the facilities can be expanded seamlessly once the need arises.
Our Say

According to International Air Transport Association's global airport monitor, the international airport in Delhi scores 2.6 in total customer satisfaction against a global average of 3.7 and an Asian average of 3.5. The Mumbai airport has an even lower score of 2.3. No wonder then that it is imperative for the Civil Aviation Ministry to spruce up its act not only in the case of these two airports but also others around the country. This is an ironic situation especially when it is public knowledge that the AAI is not starved of cash- it generates annual profits of around Rs. 300 crore (US $ 66 mn) and has free reserves of almost Rs. 1,300 crore (US $ 288 mn).

The country's airport infrastructure is already overburdened with only 170-odd jets crisscrossing Indian skies. This number will jump to over 400 in the next five years as seven or eight new airlines are set to take wings and existing carriers, Indian as well as international, will press more flights into service. Realising the need to move fast, the Civil Aviation Minister hopes to revamp at least ten airports this year. "We have been making buildings and not terminals," he was quoted as having said, adding that there will be rapid exit and taxi tracks, and better air traffic control.

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