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50 Airports Identified for Low Cost Development to Boost Regional Connectivity

 

 
 
  Published : March 2014
 
     
   

HYDERABAD. The Government has identified 50 airports for low cost development and modernization to give a flip to regional connectivity through the collaborative efforts of the central and state governments and airlines.

 

This was stated by Mr. Ashok Lavasa, Secretary Civil Aviation in the inaugural session of the seminar on ‘Enhancing Air Connectivity’ at the day two of the India Aviation 2014 organised by FICCI.

There has been a phenomenal growth of the Indian aviation sector in the last decade to reach out to the consume at the bottom of the pyramid. From an era of low cost airlines now the shift is “towards creating low cost airports to take it a step further and also bring down the high operating costs in the sector. We are working towards a framework where state, central, and the airlines make collaborative efforts”, thereby enhance passenger traffic in non metro cities that would lead to an era of regional connectivity. An initiative in this direction has been taken by several state governments. He informed that several state governments had responded to industry’s call to ease the burden of taxation on the aviation sector by drastically bringing down the VAT charges on ATF. He also suggested that viability gap funding could also be considered for developing low cost airports if desire by the industry.

A cabinet note has been circulated to create a separate body for air navigation as we need to separate air navigation from the Airport Authority of India to give further impetus to the sector. Regional connectivity and route dispersal policy has been formulated. Mr. Ashok Lavasa talked about “involvement of Indian manufacturing sector in this entire business of aeronautics manufacturing so that it could be harnessed with the growth of the civil aviation. A dialogue on creating aeronautics manufacturing facility for the aviation sector has been triggered at the 4th International Exhibition & Conference on Civil Aviation being held from at Begumpet Airport, Hyderabad.

General, FICCI said, “Indian Civil aviation sector cannot be looked at as merely aviation services and consumer market. As a large industrial economy India must gain excellence in the MRO industry (Maintenance, Repair & Operations) as well as enter the realm of technology and manufacturing in this vast sector. FICCI will work with the civil aviation industry to support this endeavour”.

A knowledge paper was on “Enhancing Air Connectivity” prepared in association with ministry of aviation, FICCI and KPMG was released on the occasion. Mr. Amber Dubey, partner and head –aerospace and defense, KPMG presented the theme paper on the event.

Mr. Henry Steingass, Regional Director - South and Southeast Asia, US Trade and Development Agency (USTDA), the corporate partner country for the event said, “Aviation is one the drivers of the economy. Our democracies share commonalities where the nature of economy is driven by free enterprise. We need to look at aviation for the vast need of transportation of passage as well as cargo traffic and strengthen our economy. And this is where the US system is most evolved in handling the traffic. This is where the challenge that India faces and keeping our commonality we can respond to Indian need. Of course India is striving in its own way to meet the challenges in the area of safety threats.

Drawing a comparison between the two economies and holding the edge that India enjoys over US he said “India does not suffer from the legacy of negative systems as most of the airlines are new. Moreover in the management of air traffic system in US we are making a transition from radar based to satellite based air navigation system where India can leap frog to manage through satellite system. India is very much in apposition of being a global leader from being a major player in south Asia.”

India is now moving towards an era from where the elitist tag is removed in the sector where the dream of flying is being realized by the common people. Promoting General aviation, MRO services, use of flexi aero space, financing air transport, emerging technologies for improving connectivity were some of the other thrust areas that were in the forefront of the day- long seminar that saw the bigwigs of the international aviation industry, key stake holders from the Indian aviation industry, experts and government officials brain storm on taking the aviation sector to greater heights.

Dr Vivek Lall, noted aerospace expert, observed that new airports would require well trained personnel and their training in contemporary and futuristic systems would be a big challenge.

Mr Pritam Bhavnani, President of Honeywell Aerospace India said that use nand application of technologicaly had to be judicious. He made an excellent presentation on cost sustainability, pointing out that travel costs could be reduced by minimising certain facilities at smaller airports.

Mr Nalin Jain, President and CEO of GE Aviation, suggested that airports and airlines should be totally in sync without anyconflict of interest.

Players from the Civil Aviation industry and officers from the Civil Aviation Ministry and armed forces attended the seminar.

- (With inputs from Shweta Sehgal)

 
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