India is taking steps to take off into the 21st century with a greatly improved aviation infrastructure. The Indian government recently brought out a draft policy on airport infrastructure designed to reinvigorate the air transport industry by involving the private sector. It is now being increasingly recognized that aviation, far from being a mere mode of transportation for an elite group, is crucial for sustainable development of trade and tourism. In this context, it is vital that airport facilities are modernized in anticipation of the escalating needs of the aviation industry.

India currently has 449 airports and airstrips. Among these, the AAI owns and manages 92 airports and 28 civil enclaves at defense airfields and provides air traffic services over the entire Indian airspace as well as adjoining oceanic areas. In 1996-97, these 120 airports/civil enclaves handled 396,000 aircraft movements involving 24.3 million domestic and 12.2 million international passengers plus 680,000 tons of cargo. More than half of this traffic passed through the international airports at Mumbai and Delhi.

Mumbai, Delhi, Chennai, Calcutta and Thiruvananthapuram airports are classified as international airports. They are capable of handling Boeing 747 aircraft and are available for scheduled international operations by Indian and foreign carriers. The airports at Bangalore, Hyderabad, Ahmedabad, Calicut, Goa, Varanasi, Patna, Agra, Jaipur, Amritsar and Tiruchirapally are known as customs airports. They have customs and immigration facilities for limited international operations by national carriers and for foreign tourist and cargo charter flights.

Domestic airports which have a minimum runway length of 2,286 m and adequate terminal capacity to handle Airbus 320 type of aircraft are classified as model airports. They include Lucknow, Bhubaneswar, Guwahati, Nagpur, Vadodara, Coimbatore, Imphal and Indore. They can handle limited international traffic if required.

Considering the forecasts made by different organizations and taking a reasonably pragmatic view, the expected traffic scenario in India up to the year 2010-11 has been projected by the Foundation for Aviation and Sustainable Tourism thus: During the next 20 years, passenger traffic will swell four-fold and cargo movement will go up six times current levels. Furthermore, ICAO (the International Civil Aviation Organization) predicts worldwide growth in air traffic at 5% a year, or doubling in volume once every 14 years. The Asia Pacific region is set for higher than average growth. A study shows that the region may account for more than 50% of world air traffic by the year 2010.

The new policy on airport infrastructure seeks to keep pace with the increased activity in the air with suitable improvements on the ground. In order to develop the capacity of airports in accordance with future projections, the airports are going to be reclassified as international hubs, regional hubs and other operational airports.

International hubs may cover airports currently classified as international airports and those eminently qualified to be upgraded as such. International hub airports will be used for dispersal of international traffic to the hinterland. The facilities will be of world class standards and will include convenient connections to international and domestic passengers, airport-related infrastructure like hotels, shopping areas, conferencing and entertainment facilities, aircraft maintenance and so forth.

Regional hub airports will act as operational bases for regional airlines and also have all the facilities currently postulated for model airports including the capability to handle limited international traffic. Other operational airports will be developed so as to be cost-effective on the basis of individual needs to meet the requirements of traffic handled by them.

According to the draft policy on airport infrastructure, the AAI will provide Air Traffic Services over Indian air space and adjoining areas in accordance with ICAO Standards and Recommended Practices. New CNS/ATM systems will be introduced on a priority basis in terms of the AAI’s plan and ICAO’s Regional Plan.

Since speed is the essence of air transport, the time passengers spend at the airport will be drastically reduced. Procedures will be simplified so that incoming passengers can be cleared within 45 minutes of arrival and departing passengers within 60 minutes including check-in time. Targets of 30 and 45 minutes respectively will be laid down for domestic flights. Similarly, the dwell time of export cargo will be brought down from the present four days to 12 hours, and of import cargo from the present four weeks to 24 hours. Cargo clearance will be on a 24-hour basis.

The draft policy on airport infrastructure is looking at financing for modernization from a new angle. In addition to increasing revenue from non-aeronautical sources, rationalization of service fees and economy in expenditure, the infusion of private (including foreign) investment in the airport sector has been put at the top of the list. According to the draft policy, what is needed now is a strategy that permits utmost latitude in the patterns of ownership and management of airports in view of the worldwide thrust towards corporatization and privatization of airports. Foreign equity participation in airport projects may be permitted up to 74% with automatic approvals, and up to 100% with special permission.

The new thinking is that participation of private parties in airport projects is mandatory because of the huge sums involved and also to promote greater efficiency in their management. An Airport Restructuring Committee in the Ministry of Civil Aviation will thus identify existing airports where private sector involvement is desired.

Fiscal incentives will be provided to those involved in infrastructure projects as may be decided by the government from time to time. At present, the following incentives are available:

According to the draft policy, such incentives should be made available not only to new companies investing in airport infrastructure but also to the AAI and existing agencies investing in existing airport infrastructure.