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Rediff.com  » Business » Real problem of India's new airports

Real problem of India's new airports

By A K Bhattacharya
March 18, 2008 10:15 IST
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Union Civil Aviation Minister Praful Patel will no doubt pat himself on the back for the manner in which he prevented last week's airport strike from escalating into a major crisis.

Busy air travellers, their numbers growing by the day, will also thank the minister for limiting their travails on account of the strike to only a couple of days.

In some airports, alternative arrangements were in place so that the strike by airport workers did not make any adverse impact on the general quality of service offered.

In return, Patel struck a deal with the workers. The existing airports in Hyderabad and Bangalore would not be closed down, he assured the agitating workers.

Non-scheduled airlines or private business jets will be allowed to operate from these airports, situated as these are almost in the heart of the two state capitals. There was also a hint that whenever the government planned to build new airports elsewhere, the existing ones would not be closed down.

The deal seemed like a win-win situation for all except the new airport operators. Workers at the existing airports were satisfied because they could retain their jobs. It didn't really matter that they would not have much work to do in the existing airports.

A few airlines, particularly the low-cost carriers, would hope to lobby with the government to allow them to operate from these existing airports in Hyderabad and Bangalore. And who knows, they might succeed!

Many aviation experts have also welcomed the move. They have argued that the traffic growth projections were so underestimated when the new airports were planned that there is now a case for keeping the existing airports open without fearing any major impact on the revenue flows for the new airport operators.

This might mean renegotiation of a few clauses in the contract for the new airports. But then, this is not the first time a contract in India has been reopened and renegotiated, they point out. The new airport operators are unhappy but they are not making much noise over it. They may also be realising that the traffic growth projections are indeed underestimated and it is in their interest to tide over these protests with the least damage to the long-term viability of their new airport projects.

Once the new airports in Hyderabad and Bangalore stabilise their operations and the air travellers get used to them, the new projects will be left with few detractors. That seems to be a pragmatic approach.

What about the air travellers? Have their interests been taken care of? In the first place, they were the least affected by the closing down of the existing airports.

The concept of an airport located in the heart of a city is almost obsolete. A distance of 30 to 50 kilometres to reach airports is quite common. Even the higher commuting cost to be incurred by travellers to reach the airports is not a real issue.

Every new facility faces such problems and over time these get resolved as supply takes care of demand.  The "exorbitantly high" user development fees were also cited by some detractors to run down the new airports. Even this was not a big issue. Once the airport regulator is in place, this too would be taken care of.

The real problem with the new airports in Hyderabad and Bangalore is neither the distance nor the higher costs. It's the abysmal condition of the roads that connect the new airports to the city. But amidst the high-voltage drama of a strike by airport workers, this real issue of an expressway connecting the city with the new airport seems to have been buried. 

If Praful Patel uses his persuasion skills to convince the two state governments to expedite the construction of the expressway corridors taking air travellers from the city to these airports, then the rest of the contentious issues will automatically get resolved.

Existing airport employees may continue to be happy with the little work that they get to do while retaining their existing salaries. In any case, if the low-cost carriers are indeed allowed to operate from these existing airports, this formula could provide a permanent resolution to the controversies associated with all the new airport projects proposed in other cities.

Growth in traffic will take care of the interests of the existing airport employees, experts who want the existing airports to remain functional and even the new airport operators. If only, Praful Patel can get a world-class highway made as early as possible to connect the new airports with the two cities!

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A K Bhattacharya
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