The Government’s Plan to Revive Airports and Subsidise Fares, to Take Flying to the Masses, Is Riddled With Problems.
The big, pale blue entrance gate of Ludhiana airport remains shut for most part of the day. It opens only when the airport staff comes to work or leaves in the evening. There’s hardly been any passenger movement over the last 30 months since Air India closed operations here. Once in a while, people come to board private chartered flights.
Punjab Police personnel at the gate could barely write. When this was pointed out, the Director, A.N. Sharma, said the security staff will shortly undergo training in aviation safety that will prepare them for challenges after the airport starts functioning again from July-end, when it will kick off with scheduled flights from Alliance Air and Deccan Charters, thanks to the recent government push to regional air connectivity. In June 2016, the government had come out with a civil aviation policy that laid emphasis on making flying more affordable. Then, in April, Prime Minister Narendra Modi launched the UDAN (Ude Desh ka Aam Naagrik) Scheme that caps fares on regional routes at ₹2,500 for half the seats in flights with duration of up to one hour. In the first phase of UDAN, five airlines have bid for 128 routes covering 70 airports, including 45 underserved/ unserved ones. Besides this, the government intends to spend ₹50-100 crore on each of these airports, a large number of which are undergoing last-minute fixes.
However, experts say fare subsidies and capital expenditure alone cannot ensure long-term sustainability of these airports. The biggest lifeline of an airport is passenger demand and airport traffic in India is skewed towards the metros and tourist destinations. Six airports – Mumbai, Delhi, Bengaluru, Hyderabad, Chennai and Kolkata – account for over 70 per cent of domestic traffic.
The Demand Conundrum
Bu hikaye Business Today dergisinin August 13, 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Today dergisinin August 13, 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS