Private airports protest regional carrier sops

Civil Aviation Minister Praful Patel's ambitious policy to encourage regional airline carriers has hit an air pocket with private airport developers opposing a stipulation to offer these carriers infrastructure free of landing or parking fees.

Private airport developers in Delhi, Mumbai, Hyderabad and Bangalore, said landing and parking fees account for a significant proportion of revenues, so offering these services free would be unviable.

An executive of GMR Hyderabad International Airport Ltd (GHIAL), which runs the Hyderabad airport, said that aeronautical charges would be the key revenue earner till 2009, accounting for a third of the airport's revenues.

"Once the airport starts earning non-aeronautical revenues from hotels and other projects, it will be in a position to offer free landing and parking services," he said.

Airport developers also said providing space to smaller aircraft was unviable until their facilities are fully modernised.

"Smaller aircraft have to maintain a greater distance with larger aircraft in the air. This leads to inefficient use of airspace and runway. Operating such aircraft would only be possible after the new runway comes into place," said a Delhi airport official.

Added an executive of Mumbai airport: "Given the land constraints in our airport and rising demand for passengers at the same time, we would prefer large aircraft that can carry more passengers."

Smaller aircraft, which carry fewer passengers and put the same kind of demand on the airport infrastructure, would be very unviable to operate in the airport at this stage, he added.

Small aircraft movements (take-offs and landings) account for 10 per cent of the 650 aircraft movements a day. With government incentives, the industry expects more than 150 small-aircraft movements to be added.

Meanwhile, regional carriers that were planning to apply for permission said their operations would be unviable without such concessions. Landing and parking fees account for 5 per cent of the costs.

Said Kapil Kaul, CEO of the Indian sub-continent in Centre for Asia Pacific Association that is helping two investors set up regional carriers in the south and east: "Most of them are making their business plans on the basis of the incentives promised by the government. If private airports decide to say no these projects would become unviable."

Airline authorities have voiced their concerns by making representations to the Directorate General of Civil Aviation (DGCA), which said it is looking into the matter.