Gujarat eyes PPP model for airline to link cities in state

New Delhi: After partnering the private sector to develop airport infrastructure, state governments are now keen to join hands with private firms to start regional airlines in a bid to boost intra-state air connectivity, while others want to upgrade infrastructure quickly to attract domestic carriers.
The first of such initiative is being led by the Gujarat state government, which plans to put 19 of its cities on the air traffic map through a dedicated regional service, nearly a decade after smaller airlines such as Gujarat Airways and Span-Air of Maharashtra shut down operations.
The Gujarat government plans to limit the proposed airline’s operations within the state. “At present, most of the scheduled carriers provide connectivity between airports in Gujarat with a metro, however, intra-state airport connectivity is found to be deficient. For enhancing connection between the airports and airstrips in Gujarat, the government of Gujarat envisages the involvement of private sector,” the state government said in its request for proposal through Gujarat Tourism Project Development Co. Ltd, a joint venture between IL and FS Infrastructure Development Corp. Ltd and Tourism Corp. of Gujarat Ltd that is focused on infrastructure and tourism projects in the state.
The state government has sought to appoint consultants to study the demand and market feasibility of such an airline with a 10-year perspective beginning 2008.
The final study, including identification of infrastructure gaps in the state, is expected to be taken up for consideration by the state government around July or August.
12/05/08 Tarun Shukla/Livemint

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Categories: New May 2008, Regional Airlines May 2008