By D. Murali and C. Ramesh

Chennai, May 14: The Indian aviation sector is faced with several challenges that need to be met expeditiously in order to unlock its true potential. And the challenges that require priority attention relate to inadequate airport infrastructure and, more importantly, inefficient management of existing airports, according to Mr Kuljit Singh, Partner, Ernst & Young.

Speaking to Business Line, he said that the other challenges constraining the sector’s growth include regulatory curbs, high fuel prices compared to international standards and increasing pressure on margins.

“It is interesting to note that of the 125 airports owned, operated and managed by the Airports Authority of India (AAI), only about half are operational and on commercial routes.”

Moreover, since the airports operate as a network, problems at select airports tend to spill over the entire system, creating further inefficiencies, he added.

While augmentation of infrastructure is receiving a lot of attention at the Government level, the other less-talked of solution to maximise the sector’s potential relates to efficiently managing existing infrastructure, according to Mr Singh.

“Effective management of existing airport infrastructure is surely a less capital-intensive and faster solution.”

He called for directing focus on the area of air traffic management services, “primarily comprising en route and airport air traffic control, airspace management and communication.”

Additional areas requiring attention are navigation and surveillance, contingency planning and crisis management and aeronautical and meteorological information.

In this regard, some action has already been taken – a recent proposal seeks development of satellite-based navigation system at Delhi and Mumbai airports in association with the US Federal Aviation Administration.

Another area that needs to be worked on is improved space management at the airports, said Mr Singh.

“Paucity of efficient airport infrastructure comes at a high cost – mainly on account of significant fuel wastage in air, and at the tarmac, due to traffic congestion, especially in metros.”

Besides, growth restrictions on account of limited parking bays and higher flight turnaround times on account of limited security machines, staff and ticket counters lead to greater inefficiencies.

“These translate into not only higher cost implications for passengers but also poor service levels, undesirable flight schedules and significant inconvenience on account of flight delays.”

Mr Singh urged elimination of “growth-strangling techniques” like putting a cap on number of arrivals and departures per hour and imposing peak hour charges.

Instead, he said, they need to be substituted with “growth-supporting proactive measures” aimed at improving the management of existing infrastructure, along with defining and implementing a well-planned long-term augmentation strategy.

Significant planning coupled with prioritisation and regular status checks will be critical to future success, he added.

The country’s aviation sector has reached “a point of inflection” and is on the cusp of a period of exponential growth.

“Domestic air traffic has grown at a CAGR of more than 25 per cent in the past two years. Similar growth is expected for international air traffic as well.”

According to Mr Singh, creating additional airport infrastructure is the long-term solution to improve the situation.

“An estimated investment of Rs 40,000 crore is envisaged for airport development over five years and significant action can be seen on the ground in this regard. This is primarily a long-term solution.”

Enhanced public-private partnerships on the lines of the existing Delhi and Mumbai airports and the greenfield airports at Bangalore and Hyderabad would be key to capacity augmentation, which will go a long way in boosting the growth of the country’s aviation sector, he added.