No-Frills Airports-faster, economic approach to boost Air Connectivity: ASSOCHAM

ASSOCHAM welcomes the Aviation Ministry's move to draw up a plan for driving Infrastructure Development and Air Connectivity during the initial months of the new Government. The Indian aviation industry, with an estimated market size of INR 60,000 crore, has witnessed a CAGR of 5% and 7% in domestic and international passenger traffic respectively during 2007-12. Per week flight average has increased from 8,724 in 2006 to 12,107 in 2011 and is expected to reach 15,000 by 2014-15. Interestingly, much of this growth is contributed by Tier II and III locations.

ASSOCHAM recommends that most new airports can be developed on the No-Frills model, which will have a multiplier effect on Exports, Trade, Travel, Tourism and other allied industries. Countries like Malaysia, UK and France have already successfully tested this model of infrastructure development.

 

Government to assess option of developing un-utilized air strips in India. India currently has about 457 airstrips across all categories of ownership and only about 82 of these are active or operational.

Leaner construction design for developing new airports that rationalizes facilities and services offered, without compromising on quality and safety.

New and rationalized structure of airport charges for No-Frills airports - more rational vis-a-vis similar charges levied at bigger airports.

Innovative models for maximizing non-aero revenues by tapping potential in housing and commercial real estate development close to airports

The visible interest of the new Government in creating a framework for promoting smaller, low cost airports in India is highly encouraging. ASSOCHAM believes this will significantly boost private sector interest in Airport development and enable the concept of No-Frills Airports to TAKE-OFF.

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