Development - Pitching for the Private

The forthcoming Civil Aviation Policy makes a strong case for private participation through creation of opportunities for investors to realise adequate returns on investment.

In the wake of rapid economic growth, civil aviation has emerged as the fastest growing arm of the transport segment in India. According to sources in the Ministry of Civil Aviation, air passenger traffic which stood at 74 million in 2005- 06, is expected to grow to 115 million in 2010. In the same period, air cargo traffic is expected to rise from 13.8 lakh tonnes to 33.6 lakh tonnes.

Economic growth and civil aviation are closely linked. While boosting revenue from travel and tourism, civil aviation also serves to integrate the nation. Although a few components of civil aviation such as airlines, aircraft, passengers and cargo traffic have all registered impressive growth rates in recent years, the development of infrastructure has been painfully slow and unbalanced. Fully developed and well-equipped airports in India are few. Most of the important and busy airports have a single runway, apart from the lack of adequate high speed exit taxiways. Lack of all-weather navigational aids, shortage of parking bays as well as of air-traffic controllers and ground handling staff are some of the infrastructure impediments which not only cause inconvenience to passengers, but tend to stymie further growth in the sector. Delays are routine at airports like Delhi and Mumbai. A report in Business Standard notes: Both these airports typically handle 25 to 28 flights an hour, compared to most international airports which handle about 40 flights per hour per runway. According to another report on Internet portal rediff.com, extra fuel for delayed landings and take-offs at Indian airports may cost an airline over $100 million (Rs 437.5 crore) annually. Overall passenger satisfaction at Delhi and Mumbai is reported to be well below the Asian and global averages.