AAI Keeps Cargo Hub Project On Hold Citing Viability Issues

Surat: The dream of developing diamond city's airport into a major cargo and maintenance hub has taken a major beating, two years prior to its tentative realisation deadline.
The Airport Authority of India (AAI), which had drawn up plans of expansion for the city's airport, has now said that the plan has been kept on hold till the financial viability is verified and readiness of major airlines to shift base to the city is achieved.
Airport Controller GK Khere told TOI, "Headquarters have kept this plan on hold only because they are not getting the readiness of any of the major airlines to shift from Mumbai." He also added, "Even if one or two of them show willingness, this project will get immediate approval."
It can thus be safely said that AAI doesn't see financial viability of the project. However, these calculations of AAI officials are based on current passenger traffic, which is minimal and curtailed to just one flight per day.
"Forget the recovery of capital which is used in construction of the airport, at present we are not even able to meet our expenses," Khare said.
28/07/10 Himanshu Bhatt & Melvyn Thomas/Times of India

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Categories: Airports Jul 2010, Cargo Jul 2010, New Jul 2010