>From businessworldindia.com/july0504 Needed: Low-cost terminals
As low-cost airlines gain traction the world over, airport authorities are not only sitting up and taking notice, but also competing fiercely to attract these airlines to use their airport infrastructure. Since low-cost airlines look for destinations that offer low landing and berthing charges, airport authorities are now launching new terminals dedicated to low-cost airlines. Singapore, Malaysia, Chicago's South Suburban Airport, South Dakota's Sioux Falls Regional Airport, and Poland's Balice and Pyrzowice airports have already announced such plans. In India, the new Hyderabad airport plans to keep aside some space for low-cost airlines to get them to fly more often to the airport. Here, there will be no aerobridges; passengers have to walk to the aircraft. Even the level of services will be reduced. David Stanley, founder of Stanley Associates, a well-known, UK-based airport infrastructure consulting firm, is closely involved with the Hyderabad project. Explains Stanley: "In Europe, the smaller airports aggressively compete to sign up airlines and then jointly help them market the routes. In India, there is too much of a monopoly mindset." This is borne out by the findings of the Naresh Chandra Committee report, A Roadmap for the Civil Aviation Sector, which paints a dismal picture of airport infrastructure. In all, there are 122 airports which are managed by the Airport Authority of India (AAI). Of these 94 are civil airports (including 11 international) and 28 are civil enclaves at defence airfields. Out of the 400-odd airstrips and airfields in the country, only 62 are in use. Dispersal of traffic simply hasn't happened, with over 40 per cent of traffic being between Mumbai and Delhi. The four gateway airports account for 42 per cent of revenue. Only 10 airports made a profit in 2001. Finally, airport charges are almost 78 per cent higher than the international average. Says the report: "Barring a few airports, available infrastructure is under-utilised. There is a large number of airports where full infrastructure is available, but only operate one to two flights a day." Gradually, some states like Maharashtra are realising the benefits of integrated development. The state has 30-odd airstrips; it has handed over nine such airports in places like Kolhapur, Nashik, Gondia, Nanded, Karad, Amravati, and Baramati to Maharashtra Industrial Development Corporation (MIDC). "The state wants to promote industrialisation by making it possible to start air services to these industrial belts," says Sanjay Patil, chief planner, MIDC. What's more, airports like those in Kolhapur and Nashik (Ozar, HAL's airport) are being equipped with night-landing facilities. Finally, like Andhra Pradesh and Karnataka, Maharashtra has brought down the sales tax on aviation turbine fuel (ATF) from 24 per cent to 4 per cent. This is one of those low-cost-airline-only incentives. It is meant only for turboprops, not jets.
