UDF, LDF raise voice against cow slaughter ban

Mumbai, Feb 9: Given the slow progress on the ongoing Rs 38,000-crore capacity expansion at the four largest metro airports, and also the surging traffic, the snaky queues will continue at least till 2023, warns a report.

The four largest airports -- New Delhi, Mumbai, Bengaluru and Hyderabad -- handle more than half of the traffic and are operating at 130 per cent of their installed capacity. These airports are under a record Rs 38,000-crore capex but the capacity will not come up before end-2023, says a Crisil report.

“With the dip in traffic growth largely behind, we expect congestion at the top four airports of New Delhi, Mumbai, Bengaluru and Hyderabad, which handle more than half of the load, to continue till about FY23,” says the report.

Already these airports are operating at over 130 percent of installed capacity, and the ongoing healthy traffic growth this operating rate is expected to rise further in the next 12 months.

“Operationalising of capacities in the following two fiscals will bring down utilisation levels albeit still high at over 90 per cent by fiscal 2023 and that is despite an unprecedented Rs 38,000 crore capex being undertaken by the operators of these airports over five fiscals 2020-24,” says the report.

Despite this unprecedented capex that is debt-funded, ratings are likely to be stable given the strong cash flows expected due to healthy traffic growth, low project risks associated with the capex and improving regulatory environment, notes the report.

“Capacity at these four airports will increase a cumulative 65 per cent to 228 million annually (from 138 million now) by fiscal 2023. However, traffic is expected to grow strong at up to 10 per cent per annum over the same period. Since additional capacities will become operational in phases only by fiscal 2023, high passenger growth will add to congestion till then,” warn the report.

High utilisation will ride on pent-up demand (accumulated in 2019 as traffic was impacted with the grounding of Jet Airways) and one-off issues with new aircraft of certain airlines.

Further impetus will also come from improving connectivity to lower-tier cities and reducing fare difference between air and rail. Increasing footfalls at airports provide a leg-up to non-aero streams such as advertising, rentals, food and beverage and parking, which comprise around half of the revenue of airports already.

These are expected to grow strongly at over 10-12 per cent, also supported by higher monetisation avenue coming along with current capex. The other half of revenue (aero revenue) is an entitlement approved by the regulator, providing a pre-determined, fixed return over the asset base and a pass-through of costs.

Aero revenue is also expected to get a bump up during fiscals 2022-24, when a new tariff order for airports is likely. Overall aggregate cash flows are likely to double by fiscal 2024 and provide a healthy cushion against servicing of debt contracted for capex, the report concludes.

Mumbai, Mar 22: The total number of coronavirus positive patients in Maharashtra has risen to 74 with 10 more positive cases reported in the last 24 hours, officials said.

Of the 10 new cases, 6 are in Mumbai and 4 in Pune, they said on Sunday.

Earlier this week, a Covid-19 patient died in Mumbai.

Jun 23: The U.S. government on Monday restricted charter flights from India, accusing the nation of "unfair and discriminatory practices" by violating a treaty governing aviation between the two countries.

Air India Ltd. has been making flights to repatriate its citizens during the travel disruptions caused by the Covid-19 outbreak, but also has been selling tickets to the public, the Transportation Department alleged.

At the same time, U.S. airlines have been prohibited from flying to India by aviation regulators there, the DOT said in its order. The situation "creates a competitive disadvantage for U.S. carriers," the agency said in a press release.

Air India is advertising a schedule that is more than half of pre-virus operations, the department said. "The charters go beyond true repatriations, and it appears that Air India may be using repatriation charters as a way of circumventing" that nation's flight restrictions, the U.S. agency said.

The order becomes effective in 30 days, the department said.

Indian airlines must apply to the DOT for authorization before conducting charter flights so that it can scrutinize them more closely, it said. The department will reconsider the restrictions once India lifts restrictions on U.S. carriers.

The action against India follows weeks of DOT restrictions against Chinese airlines after the U.S. agency accused that nation of unfairly banning American carriers in the wake of the virus. On June 15, the U.S. announced it would agree to allow four flights a week from China after it allowed the same number by U.S. carriers.

Attempts to reach Air India and the Indian embassy in Washington after business hours were unsuccessful.