New airports set to become mobility hubs
NEW DELHI: With the resurgence in air travel and capacity utilisation at over 80% for all major airlines, civil aviation ministry’s plan for adding more airports has received fresh momentum as improved prospects for the sector has given a leg up to project feasibility.
The ministry, which has plans to raise the number of airports in the country from over 130 now to around 220 by 2025, will have new airports designed as hubs of multi-modal connectivity, fully integrated with metrorails for passenger transport and railway link to the closest sea port for cargo movement, said an official aware of discussions within the government.
This is expected to give a boost to mobility as well as trade, the official said. Experience showing that new airports built prior to the pandemic has contributed to the recovery in air traffic in recent months, has given more confidence to policy makers for new projects. Also, the recovery in the sector has helped in easing some concerns about financial viability of airports, although factors like high jet fuel price pose downside risks to traffic. Infrastructure creation is a key element of the Narendra Modi administration’s economic recovery strategy given its multiplier effect.
“As part of the airport capacity expansion, there would be waterdromes in the North East and in islands and helipads in the hill states. Some of the new airports to be added are projects of scaling up existing air strips into full-fledged airports. In some of them, there may not be the requirement of massive infrastructure like in a metro city, but a small functional airport facility would offer air connectivity and boost economic activity,” said the official quoted above. Even 220 airports may not be sufficient for a large country like India, said the official.
Earlier this month, the union cabinet cleared a ₹1,305 crore airport project at Dholera in Gujarat, expected to serve as a cargo hub in the industrial region.
Experts said airport capacity addition will contribute to the aviation sector’s growth but in some cases at least, incentives may have to be given to airlines. “Once you have an airport in a smaller town (under UDAN scheme), incentivising airlines to start operations till traffic achieves a critical mass, is also important,” said Rajeshwar Burla, group head,corporate ratings, Icra Ltd. Improved connectivity to smaller cities have contributed to the speedy recovery of domestic air traffic post covid and is helping the industry as a whole, he said.