Bangalore: Regional Airport-Holdings International Limited (RAHI) today announced
that it has created a unique business model consisting of aviation infrastructure, air services and geo-specific industry clusters to make regional aviation viable for private investment. In the next five years, RAHI will invest in over 15 aviation infrastructure and services’ projects, with a value exceeding Rs. 3000 crores.
‘With India is poised to be the third largest aviation market by the end of this decade, the aviation revolution has already begun. The Government of India has ambitious plans for 500 airports by 2020. It is estimated that Indian aviation will see an investment of about US$120 billion over the next few years. There is a need for infusion of capital into the aviation sector to keep up with the booming demand. RAHI will work in tandem with the Government’s plans and fuel growth in the sector,” said Sandeep Mendiratta, Head – Aviation Business – ITNL & Member of the Board – RAHI.
RAHI is a joint venture (JV) between IL&FS Transportation Networks Limited (ITNL) – a dominant player in transportation infrastructure development and finance; and Comet Infra-Developments Private Limited (CIDPL) – an infrastructure development group. This JV is currently developing airports in Shimoga and Gulbarga in Karnataka, under the Public-Private Partnership model, both of which will be operational by mid-2012. The concession period for both projects is 30 years, extendable by an additional 30 years.
“RAHI has a three-pronged strategy for regional aviation, specifically in tier-II and tier-III cities in India. We will not only develop airports and associated infrastructure but also have our own regional airline that will serve tier-II and tier-III cities. In addition, RAHI will develop geo-specific industry clusters that will bolster opportunity for the host community, encourage the local economy, as well as create the need for efficient travel to and from these locations”, said Umesh Kumar Baveja, Director – CIDPL & Founder-Chairman –RAHI.
Based on global studies, RAHI understands the need for the creation of mini-aerotropolises – business ecosystems that benefit from proximity to aviation infrastructure – in every location that it develops airports. To this end, feasibility studies have been conducted for Gulbarga and Shimoga to ensure that the industry clusters developed at each landside are best suited to the local economy, demography and need, and, over a period of time, will develop into a key public asset.
RAHI expects to operationalise its regional airline in tandem with the two airports becoming operational by mid-2012. Discussions have begun with aircraft manufacturers to source appropriate aircraft for the routes RAHI will ply. RAHI is building up its operational team, distinct from the aviation infrastructure team that is currently progressing the airport development projects.
10/08/11 PRESS RELEASE/RAHI
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