New airports to turn into multi-modal mobility centres
NEW DELHI: The Union civil aviation ministry is planning to build new airports with integrated metro rail for passenger transport and rail tracks to the closest sea port for cargo movement, an official aware of discussions within the government said.
Such multi-modal connectivity hubs are expected to give a boost to mobility as well as trade, the official said on condition of anonymity. The move comes at a time air travel has rebounded after covid, and airline capacity utilization has crossed 80% at all major airlines.
The government is planning to raise the number of airports from over 130 now to around 220 by 2025, and better prospects for the sector have given a leg-up to project feasibility.
“As part of the airport capacity expansion, there would be waterdromes in the North East and in some 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,” the official cited above said, adding even 220 airports may not be sufficient for a large country like India.
Experience showing that new airports built before the pandemic have contributed to the recovery in air traffic in recent months has given more conficited
dence to policymakers to start new projects. Also, the recovery in the sector has helped ease some concerns about financial viability of airports, although factors like high jet fuel prices pose risks to traffic.
Earlier this month, the Union cabinet cleared a ₹1,305 crore airport project in Gujarat’s Dholera, which is expected to serve as a cargo hub in the industrial region. An email sent to the civil aviation ministry spokesperson on Saturday remained unanswered till press time.
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), incentivizing 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 has contributed to the speedy recovery of domestic air traffic post-covid and is helping the industry as a whole, he said.
When it comes to the question of airlines’ fleet expansion, high capacity utilisation is not the only deciding factor. “Fleet expansion by airlines will depend on profitability and not just the extent of capacity utilisation. Airlines are facing constraints due to the high jet fuel price and an improvement in profit margins would be a factor in deciding on fleet expansion as operations have to be remunerative for making fresh investments,” said Burla.