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Wednesday, 23 July 2014

Why the govt’s plan for 6 new airlines, 50 small airports is just lip service

The government has paid enough lip service in recent weeks on creating airport infrastructure, boosting regional connectivity and enhancing competition among existing airlines. It has been speaking of setting up hundreds of no-frills airports in tier II and tier III towns, offering incentives for regional airline startups and getting jet fuel taxation down. But on the ground, a lot of work in terms of policy formulation and tying up loose ends remains to be done.
Just yesterday, Minister of State for Civil Aviation GM Siddeshwara said in the Lok Sabha that his ministry has so far identified 50 locations with potential for small airports in various states. But how will these airports be set up in the absence of a blueprint for no-frills airports, which has not even been approved by aviation regulator DGCA?

Will state governments be asked to share costs of security, water and electricity? And what about traffic potential at remote locations? A ministry official had earlier indicated that no-frills airports which cost just Rs 70-80 crore will be constructed in areas which fall in the tourism circuit or backward areas where connectivity needs to be boosted.
Similar short-sightedness seems to have driven the ministry to approve six new airlines in the last one month. An article in Mint newspaper today mentions Air One Aviation Pvt. Ltd, Zexus Air and Premier Air which eventually want to become national airlines. And Turbo Megha, Air Carnival and Zav Airways which want to operate as regional airlines.
Read news in full 22/07/14 Sindhu Bhattacharya/First Post

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