Session One :

Mapping new Government initiatives to modernise India's airport networks

Day two of the India Aviation Outlook Summit 2008 commenced with VK Kalra, Executive Director, Airport Authorities of India (AAI) mapping out the new Government initiatives to modernise India's airport network. The session focused on the infrastructure issues faced by India; the initiatives taken by AAI such as development of non-metro airports; encouraging Public Private Partnership (PPP), and formulating Greenfield airport policies (terms and conditions required to build a Greenfield airport).

Currently there are about 449 airstrips in India, of which a few are handled by AAI, the state governments and the ministry of Defense. There are about 16 international airports and seven customs airports that are presently operational — 128 airports are operated by AAI on a day to day basis. The passenger traffic has grown at over 25 per cent over the last few years. The long term growth projections are eight to ten per cent when it comes to passenger traffic, and seven to nine percent for cargo operations.

With India being an attractive business proposition for the global airline and aviation industry, infrastructure issues need to be addressed on an urgent basis. Inadequate runways, as well as shortage of parking and terminal capacity are causing congestion, and eventually adding to delays as well as costs. The delay in landing costs Rs 1.25 lakh an hour. "There is high traffic concentration on airports. For example, it is 40 per cent in Mumbai and Delhi airports, and 70 per cent in the other five major airports," informs Kalra.

The main concern for AAI is to undertake steps that will help decongest airports. Few of the steps undertaken by AAI on this front include expansion and modernisation of existing airports. Airports with high traffic concentration (such as Mumbai and New Delhi) have been privatised, whereby the project’s phase one will be completed by 2010. Chennai and Kolkata airports are developed by AAI, and will be ready by 2010. Further measures undertaken by AAI include the development of 35 non-metro airports, of which 24 airports are targeted to be developed by 2009 end. The remaining 11 airports will be developed by the end of 2010. AAI will invest close to USD 1.5 billion to develop the 35 non-metro airports.

Two new Greenfield airports — Hyderabad and Bangalore — have already commenced operations. Upgrading CNS equipment and ATC services will also be addressed by AAI. Kalra also highlighted that the status of two new Greenfield airports — Navi Mumbai and Mopa have already received in-principal approval.

Other new initiatives undertaken by AAI include development of tourist airstrips; enable setting up of private airports by liberalising the FDI policy and announcement of Greenfield airport policy; to promote low cost airports; standardisation of bidding projects, and airport regulation with the agenda to set up an independent regulator. Kalra also discussed the intricacies of the Greenfield airport policy; financing and development of these airports through various entities like AAI, State Governments and other entities, and the necessary licenses and clearances required by airport companies to build Greenfield airports. Kalra concluded the session by stressing the need for cargo airports.