Low cost airports may be way forward for Indian aviation

Low cost airports and non-operational airports may be the way forward for airport infrastructure in India, according to the latest KPMG report titled 'Indian Airports – Global Landing Ground'
The report points out that besides offering the advantage of enhancing connectivity across the country, these airports will help in rationalising costs incurred by the airlines and decongesting traffic at regular airports. The report suggests that these airports will also provide much-needed relief for Low Cost Carriers (LCC) whose financial position has been negatively impacted by rising aviation fuel prices and operational costs. These airports will further the 'no frills experience' being offered by the LCC currently.
The study has an optimistic outlook towards the future of airport retail as well. Its key findings suggest that the takers for airport retail are spread across industries and service providers.
A new urban infrastructure form is on the anvil is the 'Aerotropolis', a cluster of aviation-oriented businesses around airports and transportation corridors emerging from them.
The aviation space in India is witnessing one of the worst turmoil of recent times. The figures from the Airports Authority of India (AAI) in August 2008, indicate that aircraft movements and passenger traffic decreased by 1.5 per cent and 10.2 per cent respectively compared to traffic in August 2007. International passengers grew by 9.3 per cent while domestic traffic decreased by 17.1 per cent in the same period.
Smaller non-metro airports like Coimbatore in southern India, registered a three-fold increase in international traffic as Air Arabia, Silk Air and Sri Lankan airlines started operations to this industrial hub, from October 2007.
Passengers are key stakeholders in the entire process of airport development in India as they are the end users of the facilities and drivers of revenue growth. The report highlights the lack of representation for this set of stakeholders and brings out the challenge faced here.
23/11/08 Nina Varghese/Emirates Business 24/7, United Arab Emirates

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Categories: Airports Nov 2008, Indian Aviation- In General Nov 2008