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Adjusting to ground realities

With the GMR Hyderabad International Airport (GHIAL) commencing its operations from March 23, another milestone has been reached in the evolution of the civil aviation sector. After the experiment at Kochi, where a consortium of Non-Resident Indians developed a new greenfield airport, and made it a success after many initial snags, the Hyderabad project marks another step forward in creating new airports with world-class facilities. When the Bangalore International Airport (BIAL) gets commissioned, probably in May, the current phase of airport infrastructure expansion will be complete. Work is on in Delhi and Mumbai to expand and modernise the existing airports. All these are essentially private sector-led expansion. The Airports Authority of India (AAI) is also getting ready to expand the Chennai and Kolkata airports in partnership with the private sector, besides taking up expansion of 35 non-metro airports across the country. But all these projects, and the phenomenal expansion of the aviation sector under way call for major adjustments — by the AAI employees, the airlines, the passengers, and the service providers. Basically, it must be realised that new and modern airports, which require a vast land space, will have to be located well outside the city limits.

For their part, the developers of new airports and the private partners in the expansion programme have to be realistic in fixing the user charges. At a time when low cost airlines have brought air travel within the reach of a new generation of passengers, disproportionate user charges, especially for domestic passengers, will distort the fare structure. To ensure a fair deal for all stakeholders, the Civil Aviation Ministry would do well to put in place a regulator for this sector. It is equally important to reassure the employees in the existing airports of their future. The Centre, the AAI, and the private investors must take the employees into confidence and give them an opportunity to seek alternative employment or get redeployed elsewhere. That will make the transition smoother and less painful. The State governments must take immediate steps to provide cheap and convenient connectivity to these airports by road and rail. The users must also accept the reality that enjoying world-class facilities comes with a price. To cope with the projected increase in air passenger and cargo traffic, India will have to accelerate the pace of development of aviation infrastructure. For this, the investments must come from the private sector, domestic and foreign, whose profits will have to be kept at reasonable levels.

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