Friday, August 04, 2023

Only 22 out of 148 operational airports making profit: Parliamentary Panel

Only 22 airports out of 148 airports in the country are making profits and despite being on a growth path for the last two decades, the Civil Aviation sector in India has not been able to reap full benefits and demographic dividends, according to a Parliamentary panel.

The panel headed by Rajya Sabha MP Sujit Kumar has noted that the number of operational airports in the country is very low for a country of India's size.

"Though the civil aviation sector in India has been on a growth path for the last two decades, it has not been able to reap the full benefits of the growth in Indian economy and demographic dividends, which is evident from the fact that in all, India has 148 operational airports which is very low for a country of our size. To make matters worse, out of 148 airports, only 22 are profit-making," the panel said in its report tabled in Rajya Sabha on Friday.

"There is thus a huge upside in constructing airports. India is a country of approx. 1.4 billion people and though passenger and cargo traffic have witnessed significant growth during the last two decades, there are significant challenges to be overcome.

"Despite India being the world's fastest-growing aviation market, the country's airport expansion is yet to gain the desired pace which is hindering India's booming air travel demand and aviation growth," it added.

The panel report on "Petition Praying for Modernization of Airports by Airports Authority of India" also noted that despite the phenomenal growth in traffic, most Indian carriers are reeling under losses and in this context, cost-effective operations and sustainability are a must for airlines to operate in the long run.

04/08/2023 PTI/Economic Times

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