Aviation Infrastructure in India demands Robust Upgradation

The Indian Aviation Industry has witnessed rapid progress in the last 5 years. Domestic passenger traffic has trebled and international passenger traffic has doubled, at a compound annual growth rate of 18 percent. To cater to the increasing passenger numbers, which are expected to grow threefold to 450 million by 2020, the aviation authorities are taking specific measures to upgrade all metro and non-metro airports in India. However, these measures are not being implemented in a robust manner. This could result in slowing the current pace of progress and the industry will be unable match international standards and expectations of passengers. With more than 500 aircrafts being ordered by Indian carriers in 2011, which are expected to be delivered in the next 5-10 years, the demand for airport infrastructure upgradation is the “need of the hour”.

Current Scenario

At present, there are more than 450 airports/airstrips in India. Out of which, airlines use less than 80 airports for commercial operations. Majority of the Indian airports mainly in Tier II and Tier III cities lack basic amenities such as runways, parking bays, navigational aids, hangars, and terminal buildings. These infrastructure constraints restrict the airlines from operating and realizing the immense potential in these cities, thereby hindering tourism growth and the overall economic development.

Indian carriers are aggressively expanding their reach to various international destinations in European, South Asian, and Gulf countries. However, the Infrastructure Upgradation Program is not able to cope with the increasing number of international travellers. As of now, there are only 12 custom airports with immigration and custom facilities for international operations.

Indian airports have been investing aggressively towards adding additional facilities such as retailing, duty-free shops, and aerotropolis areas in the airport premises to enhance revenues, neglecting the infrastructure need for aeronautical activities.

Due to the pioneering low-cost aviation operating environment in India, some global airline giants have recently started investing in the Indian market. But, Indian airports with small aerobridge heights and narrow parking bays are a challenge for bigger aircrafts like A380 and B787, which have advanced technology. The private airports in New Delhi, Hyderabad, and Mumbai respectively have been upgraded to cater to the needs of these wide-body aircrafts. However, the airports under AAI (Airport Authority of India) are still undergoing upgradation program, exceeding their timelines due to the focus laid on private airport expansion strategies, rather than focusing on upgrading AAI airports to cope with the future demand.

Technology Implementation in Infrastructure

Lately, the Indian Aviation Industry has been making huge investments in technologically-advanced infrastructure such as advanced check-in, ticketing, baggage screening, and RFID (Radio Frequency Identification Device). However, the increasing role of technology implementation in Indian Aviation is still not at par with developed nations. Slow-paced introduction of technology and infrastructure constraints to adapt to new emerging technologies, like Integrated Airport Management Systems and Mobile Solutions, are major drawbacks.

ATC Infrastructure

Indian airports are facing serious air congestion problems owing to the significant growth in air traffic over the last 5 years. The AAI is continuously investing in improving airport ground infrastructure by upgrading runways, taxiways, and parking bays. However, huge investment is still required to upgrade Communication, Navigation and Surveillance (CNS) and Air Traffic Control (ATC) systems. The Indian Aviation Industry has faced major issues related to poor ATC systems in the last one year, such as missing choppers, near-miss aircraft collisions, air ambulance crashes, flight delays, and cancellations. Air safety issues directly impact the airlines’ costs, passenger safety, and the country’s reputation. This calls for immediate upgradation of the current ATC system to meet the rapidly-growing infrastructure needs.

Conclusion

With strong growth expected in terms of fleet size and passenger traffic in the coming years, infrastructure in the Indian Aviation Industry needs robust upgradation. But the rise in fuel prices can act as a deterrent factor for infrastructure upgradation by reducing passenger numbers due to increasing fares, thereby adversely affecting the airlines’ profitability, and increasing the demand-capacity gap. Presently, the Indian economy faces infrastructure constraints in all major business areas and is continuously taking initiatives towards infrastructure upgradation. This upgradation can benefit the industry only for a short-term period of 5-10 years. However, with the continuous increase in technology upgradation and more fuel-efficient aircrafts expected to enter the Indian Aviation market in the future, it is advisable for aviation authorities to take long-term initiatives, rather than investing in short-term infrastructure development plans.