Tuesday, March 21, 2017

Optimism pervades the Indian Aviation Industry

India has one of the fastest growing aviation industries in the world. We are growing at more than 20% annually. The Indian Aviation Infrastructure is definitely keeping pace with the growth. In fact in Delhi, Mumbai, Hyderabad, Bangalore the infrastructure is already there, we need growth by way of more and more airlines flying to these airports. There are many airports in India which are not utilized fully. Also, we need to have some upgradations. When probed about the issue of capacity crunch in the industry and about the revival of the 400 plus airports and air strips, Mr. Goyal explains, “There is no capacity crunch. In fact there is an imbalance which needs to be rectified by integrated approach. The only way to revive the 400 plus unserved airports is to implement the scheme of regional connectivity which has been initiated by the Civil Aviation Ministry. Now the ball is in the court of the State Governments and the private entrepreneurs. They all need to come together in order to evolve a strategy for an integrated approach. I hope within the next 5 years, a lot of these small unutilized airports will become operative because of the excellent financial incentives in the new civil aviation policy.”

The only way forward for functional and loss making airports is to build shopping malls and commercial complexes around the airport and also connect them with metro services so that airports become a hub of commercial activity, not only for the passengers but also for the nearby residents. Yes, PPP is the only way forward, not only for the Indian Aviation Industry and Air India but most of the public sector undertakings which are not making profits.
20/03/17 Voyager's World

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