Old airports not viable, say experts

New Delhi/Mumbai: Civil Aviation Minister Praful Patel has been appeasing the airport unions by conceding that the old Hyderabad and Bangalore airports will remain open for general aviation (business and corporate jets and charters) once the new ones begin commercial operations.
But aviation experts say the existing airports cannot be viable.
Just two days ago, Patel told the Lok Sabha that the old airports would not be completely closed down but would be used for general aviation like private charters, defence and emergency operations.
Charter operations would mean that only smaller aircraft are used, which means that they will have to pay no landing and parking fees since the government has exempted aircraft with less than 80 seats from such charges.
Also, there will be no earnings from space rentals (like check-in counters and so on).
"Also, most of the private charter operators would want to operate out of the new airport rather than the old one," Robey Lal, former country head, International Air Transport Association (IATA), said.
Just six to seven business jets operate at the Hyderabad airport every day at the moment, which is not enough for business viability.
General aviation, say executives, does not constitute for more than 1 to 2 per cent of the total revenue.
Besides, the new airport being constructed under a public-private partnership consortium will also have a general aviation facility in the later phase of the project as part of the contractual agreement with the government.
17/03/08 Anirban Chowdhury & Manisha Singhal/Business Standard

To Read the News in full at Source, Click the Headline

Categories: Airports Mar 2008