'Greenfield airport model for self-sustenance may not work'

Bs_logoImage
BS Reporter Chennai/ Bangalore
Last Updated : Jan 29 2013 | 2:16 AM IST

The greenfield airports in Bangalore and Hyderabad are aiming to use the model of the SEZ-aerotropolis, which is a popular model to generate non-aeronautical revenues. But this can’t work without proper connectivity to city centre.

The Indian government too has invoked the model of SEZ-aerotropolis and has provided the greenfield airports in Bangalore and Hyderabad with large parcels of land for real estate development.

Says a Ernst & Young report ‘The Tough Will Get Going: New Paradigms For success in Indian Aviation’: “Besides non-aeronautical revenues, AAI and other Indian airport operators also need to improve airport connectivity, as it is central to the development of an airport as a destination.”

Both private airports, which have come up in Hyderabad and Bangalore, have been built about 40 km from the city centres, with limited and constrained connectivity and have neither any existing intermodal connectivity nor do they have any plans to achieve it in the future, laments the report.

Such short-sightedness on the part of airport developers will hamper the growth and development of airports as potential shopping destinations and recreation centres, added the report.

Such supplementary incomes provide the airport operator with a cushion to offset costs and funds for future growth and modernisation and in due course make it self-sustaining.

Meanwhile, the upsurge in the demand for air transport has necessitated the improvement and development of airport infrastructure in the country.

Over the past few years, the aviation industry has been witnessing a shift in consumer pattern, with the Asia-Pacific region outpacing the traditional leaders, North America and Europe.

Europe still continues to be the single largest region in terms of passenger revenues, though the Asia-Pacific region is expected to take a premier position by the end of 2009.

You’ve reached your limit of 5 free articles this month.
Subscribe now for unlimited access.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Sep 25 2008 | 12:00 AM IST

3 out of 5 articles left

Subscribe for unlimited access
Subscribe Now