With a total of 148 operational airports, it is concerning to note that only 22 of these airports are making profits.
What is needed is a comprehensive approach that encompasses infrastructure expansion, airline financial resilience, passenger-centric enhancements, and proactive government participation.
India’s civil aviation sector has been on a growth trajectory for the past two decades, fuelled by a robust economy and a burgeoning population.
However, a recent report from a parliamentary panel, led by Rajya Sabha MP Sujit Kumar, has shed light on some critical challenges that hinder the sector from fully capitalising on its growth and demographic advantages.
The panel head has noted that the number of operational airports in the country is very low for a country of India’s size, according to PTI report.
In this article, we delve into the key insights from the report, shedding light on critical areas that warrant attention to ensure the sustained and comprehensive development of India’s aviation industry.
Limited Profitability Of Airports
One of the striking revelations of the panel’s report is the stark contrast between the number of operational airports and the limited profitability achieved.
With a total of 148 operational airports, it is concerning to note that only 22 of these airports are making profits. This disparity underscores the necessity for a more strategic approach to airport management and operations.
Airport Infrastructure Gap
With a population of approximately 1.4 billion people, the country has witnessed substantial growth in passenger and cargo traffic over the past two decades.
India’s size and population provide fertile ground for a robust aviation industry. However, the report highlights a critical inadequacy in airport infrastructure.
The panel report on “Petition Praying for Modernisation of Airports by Airports Authority of India (AAI) ” 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.
Challenges In Airport Construction
While the importance of airport expansion is evident, the panel acknowledges the challenges associated with airport construction projects.
The capital-intensive nature, time-consuming approval processes, and land acquisition hurdles have all contributed to project delays in the past. Addressing these challenges is crucial to ensuring the timely completion of airport projects and preventing cost escalation.
Consumer-Centric Approach
The panel’s report stresses the importance of prioritising consumer interests in the civil aviation industry. Enhancing passenger experience and operational excellence at airports managed by the AAI is crucial.
Aligning AAI airports with international benchmarks and public-private partnership (PPP) facilities fosters a seamless and superior travel experience, while also bolstering India’s reputation as an aviation hub.
Government As A Catalyst For Transformation
Recognising the historical bottlenecks that have hampered airport development, the report calls for proactive government intervention.
Timely clearances and well-defined project timelines emerge as linchpins to expedite infrastructure projects, attract private investments, and mitigate unnecessary delays and cost escalations.
By adopting this strategic approach, the Indian government can pave the runway for the nation’s aviation aspirations, propelling it toward regional aviation leadership.
Summing Up
The Indian aviation sector stands on the cusp of transformative growth. The parliamentary panel’s report encapsulates the challenges that loom on the horizon and must be tackled head-on to ensure harmonious evolution.
Embracing a comprehensive approach that encompasses infrastructure expansion, airline financial resilience, passenger-centric enhancements, and proactive government participation is imperative.
The prudent navigation of these challenges holds the key to unlocking an aviation renaissance, steering India’s trajectory toward global aviation prominence.