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http://www.financialexpress.com/fe_full_story.php?content_id=128839
Revenue of non-metro airports in full throttle
Growth in low-cost airlines shoots revenue over 50%
ATREYEE DEV ROY
Posted online: Tuesday, May 30, 2006 at 0030 hours IST
NEW DELHI, MAY 29: Rapid growth in low-cost airline business has increased
2005-06 revenue of non-metro airports like Hyderabad, Coimbatore, Ahmedabad,
Cochin and Pune by more than 50%, although on a smaller base. In comparison,
the revenue of the Airports Authority of India (AAI) - which manages 126
metro, non-metro and international airports - grew just 12.78% in 2005-06.
While airport-specific revenue numbers are still unavailable, growth in
aircraft movement confirms the spike in revenue. Domestic aircraft movement
in Hyderabad, for instance, has grown 64.9% in 2005-06, followed by
Coimbatore (59.7%), Cochin (54%), Ahmedabad (52.8%) and Pune (50.6%).
Aircraft movement in Delhi grew 31.4%. Hyderabad alone handled 40,875
domestic aircraft in 2005-06.
Other airports registering high growth in revenue were Jaipur, Udaipur,
Srinagar, Amritsar, Ambala, Thiruvananthapuram, Visakhapatnam, Mangalore,
Nagpur, Goa, Varanasi and Trichy.
According to Kapil Kaul, CEO, Indian subcontinent and Middle East, Center
For Asia Pacific Aviation, smaller airports like Ahmedabad, Nagpur, Jammu
and Amritsar have largely benefited because of the start of operations by
low-cost carriers. Several airlines have also made non-metro airports hubs
of their operations. SpiceJet, for instance, has Ahmedabad as its hub, while
Air Sahara's hub is Lucknow. "When we started operations we had many flights
connecting Ahmedabad and Pune to the metros. It takes time to develop
traffic on new routes, but so far we have had a positive experience,"
Spicejet director Ajay Singh said.
Similarly, Air Deccan connects many non-metros like Ahmedabad, Jammu,
Vijaywada, Goa, Visakhapatnam and Vadodara. Passenger traffic during 2005-06
grew 27.9% with all airports together handling 5.1 crore domestic
passengers, up from 3.98 crore in 2004-05.
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Which airline will make Dabolim its hub? Maybe the one who is prepared to
take the Navy's cue and fly by night (no pun intended)!
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