Airports across India struggling to cope with massive passenger surge

Agencies
March 19, 2018

Mumbai, Mar 19: India’s airports are struggling to cope with a massive surge in passenger numbers and billions of dollars must be spent to boost their capacity, analysts have warned.

The country is witnessing a huge boom in air travel as its growing middle class increasingly takes to the skies but experts say infrastructure is failing to keep up.

“There’s an urgent need for capacity building in major Indian airports as they are bursting at the seams and close to saturation,” Binit Somaia, South Asia Director at the Centre for Aviation (CAPA), said.

India has witnessed a six-fold increase in passenger numbers over the past decade as citizens take advantage of better connectivity and cheaper fares thanks to a host of low-cost airlines.

Indian airports handled 265 million domestic passengers in 2016 and will cross 300 million this year, according to CAPA. The country’s entire airport network is only capable of handling 317 million passengers, it says.

According to data compiled by the Directorate General of Civil Aviation (DGCA), an Indian regulatory body, there were just 44 million Indians travelling by plane in 2008.

Now CAPA predicts India will overtake Britain as the world’s third-largest market by 2025 and will have 478 million flyers by 2036.

Aviation experts say the government faces a race against time to build the infrastructure to handle the soaring congestion.

“Some top airports have reached saturation. In the next five to seven years, the top 30 to 40 airports in India will be performing beyond their capacity,” said Somaia of the Sydney-based CAPA.

Flights have increased by around 20 per cent every year over the last three years, stretching many airports to breaking point.

Travellers can snap up tickets sometimes for as little as 1,000 rupees ($15) — cheaper than many fares on the country’s rickety train network.

Ten Indian airports — including Dehradun, Jaipur, Guwahati, Mangalore, Srinagar and Pune — are already operating beyond their capacity, CAPA said in a report released last month. Others are nearing their limit.

The aviation body predicts that New Delhi’s Indira Gandhi International Airport and Chennai’s International Airport will reach their handling capacity within four to six years.

World record

The situation is even more pressing at Mumbai’s Chhatrapati Shivaji International Airport (CSIA). CAPA says it is at 94 per cent capacity and is “close to saturation”.

Earlier this year, the airport said it had broken its own world record for handling the most number of arrivals and departures on a single runway in one day. Some 980 flights landed and took off within a 24-hour period.

Domestic travellers flying into India’s financial capital regularly complain of flights having to circle for up to half an hour before the plane is given a slot to land.

The airport is surrounded by slum settlements, making it impossible to increase the number of runways and highlighting the problem of acquiring space for infrastructure projects in India’s heavily congested cities.

The government is building a new airport at Navi Mumbai, 30 kilometres away, to ease the burden. It has been repeatedly delayed due to land disputes and is currently scheduled to open in 2023.

“The situation at CSIA will worsen until the new airport is operational,” Amber Dubey, India head of aerospace and defence at global consultancy KPMG, told AFP, describing the delays as “unacceptable”.

Prime Minister Narendra Modi has made making air travel accessible to all a key priority since his election in 2014. He recently launched a scheme to connect remote regions of the country by air.

In the budget last month, Finance Minister Arun Jaitley allocated $613 million to the Airports Authority of India to expand facilities.

CAPA estimates that India needs to invest $45 billion by 2030 to keep up with demand.

“The government needs to ensure we have infrastructure to manage [the] growth rate,” Manish Agarwal, an infrastructure expert at PricewaterhouseCoopers, said.

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Agencies
May 28,2020

Kochi, May 28: In these pandemic times, when the businesses are gravely affected and the MSMEs are particularly feeling the heat, a Kerala institute has come up with an initiative to help the distressed industry. The Institute of Small Enterprises and Development (ISED) has come out with a unique platform -- 'business clinic' for extending advisory services to the COVID-19 affected MSMEs in the state.

The Kochi based ISED's multi-disciplinary team of experts will offer free guidance to entrepreneurs to make a self-evaluation for improving their performance.

It will serve the interests of the MSMEs, entrepreneurial aspirants, such as the returning migrants, start-ups, educated unemployed, and women entrepreneurs.

ISED director, PM Mathew said COVID-19 pandemic has shattered the budgets and operations of most SMEs, globally, as also in India.

"Post-lockdown, the operational problems are likely to get aggravated. Beyond the broad macro level projections and debates, it is now time to act at the grassroots level. Many entrepreneurs need appropriate clinical assessment, and moral and psychological support, said Mathew.

According to the work force participation data at the national level, Kerala is ranked 31 in terms of the number of self employed, and placed in second rank in relation to the size of casual labour.

The Kerala Enterprise Development Report, brought out by the ISED states while the number of the unregistered enterprises is sizeable, constituting 76.85 % of the total, the respective share of registered MSMEs is only 9.53 %.

The constraints to these enterprises today are, poor sales, large inventory, delayed payments, damage of stock, wage bill arrears, unreliable labour supplies, fund diversion due to exigencies, GST related problems, and NPA/poor credit score.

"For all businesses, unlike in a sporadic recession in the economy, the danger today is circular and cumulative. Both from the demand side, and the supply angle, there is a serious contraction of business activities, which essentially means a glut in the cash flow. Corporate businesses, obviously, will come out of the mess due to their relative advantages of high reserve funds, liberal credit offerings, and easier access to alternative sources of finance," said Mathew.

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News Network
May 27,2020

Bengaluru, May 27: Aimed at giving a boost to affordable housing, the Karnataka government on Tuesday decided to slash the stamp duty on new apartments costing up to ₹35 lakh.

The decision was taken during a meeting chaired by Chief Minister B S Yediyurappa to review the progress of the Stamps & Registration department.

The Chief Minister directed that the stamp duty be cut from the existing five per cent to two per cent on apartments costing less than ₹20 lakh, getting registered for the first time, his office said in a statement.

Further, the stamp duty on apartments costing between ₹21 lakh - ₹35 lakh will be down from five per cent to three per cent, it said. It is estimated that in 2020-21 due to COVID-19 induced lockdown, Stamps and Registration department might fall short of its revenue target by ₹3,524 crore. The revenue target for 2020-21 is ₹12,655 crore.

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Agencies
March 6,2020

Thiruvananthapuram, Mar 6: A 12-member team from Telangana on Friday visited Kerala to study how the state contained the spread of novel coronavirus.

Interacting with the team, Kerala Health Minister KK Shailaja said, "The team will be given a presentation at National Health Mission and they will visit Alappuzha district to know how the health facilities are set up by Kerala Health Department on the grassroots level."

"The team comprising doctors and senior health officials will visit the control room set up by the Health Department and also will attend daily review meetings. They will also visit an isolation ward in the hospital and interact with doctors and nurses, " the minister said.

She added, "Kerala model is being followed by other states too. All states are working together and the country as a whole is fighting the coronavirus. They are sharing our experience. All of India is standing together. Contact tracing and isolation is the most important part."

Dr Mahaboob Khan, part of the Telangana team told media persons, that the discussion with the health minister was fruitful.

"Kerala was the first state in India where a positive coronavirus case was reported. All three positive cases reported have been discharged after testing negative. So we wanted to study how Kerala was able to contain it and the health system in place here, " he said.

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