Regional Air Connectivity in India: Challenges and Solutions

An Analysis of the Underutilisation of Airports

The issue highlighted revolves around the challenges faced by regional air connectivity initiatives in India, such as underutilised airports and schemes like UDAN (Ude Desh ka Aam Nagrik). While infrastructure development is crucial, it is insufficient to generate sustainable demand. Policymakers and stakeholders need to adopt a more holistic approach to ensure the success of such initiatives.

See Airports in India

The government conducted a Comprehensive Demand Analysis. Before developing new airports or expanding regional connectivity, it executed detailed demand forecasting studies, analysing local economic activity, tourism potential, and population density to ensure that infrastructure meets actual needs.

It then engaged private players in airport operations and route development. Private operators often bring efficiency, innovation, and market-driven strategies that can help improve airport utilisation and passenger experience. It developed airports in regions with high tourism potential or economic activity, like Kushinagar. Simultaneously, these areas were promoted through targeted marketing campaigns to attract domestic and international travellers.

Initially, airlines were provided subsidies or incentives to operate on less profitable regional routes, which helped them build a steady flow of passengers over time.

While Sindhudurg was intended to rival Goa's tourism, Kushinagar aimed to boost religious tourism. However, poor demand and unviable operations forced airlines like SpiceJet and Alliance Air to discontinue routes under UDAN.?

Similarly, other new airports, such as Kurnool, Pakyong, and Solapur Airports, remain dormant after a ?650 million revamp.

One key problem is the mismatch between infrastructure and actual passenger demand. Although airports like Kushinagar and Sindhudurg may have been developed with good intentions, they remain underutilised without a strong understanding of regional travel patterns, economic activity, and passenger needs. This leads to wasted resources and financial strain on the aviation sector.

Expanding on the Mismatch Between Infrastructure and Demand

The core issue is the misalignment between ambitious airport infrastructure development and passenger demand. While airports like Kushinagar and Sindhudurg were built with well-intentioned goals, they remain underutilised due to a lack of thorough understanding of regional travel patterns, economic activity, and passenger needs. This results in a waste of resources and places a financial burden on the aviation sector.

India's Ambitious Airport Expansion Plans

Despite these challenges, the Indian government maintains an optimistic outlook. As part of its Viksit Bharat 2047 vision, India aims to significantly expand its airport network from the current 157 to 350 airports. Site clearance has already been granted for nine new greenfield airports, including those in Alwar, Singrauli, and Parandur.

Government's Explanation for Underutilization

The Minister of State for Civil Aviation, Murlidhar Mohol, attributed the discontinuation of several routes and underutilisation of new airports to disruptions caused by the pandemic, global aircraft engine issues, the closure of some airlines, and weak passenger demand.?

Similarly, Star Air, which has a fleet of nine aircraft, plans to expand with 20 Embraer jets. It believes that smaller regional airports often serve areas with low populations and limited tourist inflows, making it difficult to sustain frequent flights.

These explanations reflect a lack of foresight and strategic thinking. The government's inability to look beyond superficial causes and address the root of the problem is a cause for concern.

Critical Questions for Reflection

In hindsight, stakeholders should have asked themselves crucial questions:

1. Post-Investment Utilisation: How do we effectively utilise airport infrastructure after investing a substantial amount, say, 100 million?
2. Diversification of Revenue Streams: Are passenger and cargo transportation the only means of generating revenue in civil aviation?
3. Alternative Revenue Generation: What are the other avenues for recovering the invested 100 million? How can we monetise aviation technology in non-aviation areas?
4. Ancillary Services: Given the capacity constraints of existing airports in other parts of the country, why didn't we construct hangars alongside new airports to offer overnight aircraft housing, basic warehouse facilities, and MRO services?
5. Real Estate Opportunities: Who profited immensely from the airport development? It was the real estate surrounding the airport. And we were left with only a fraction of the benefits! This is a regrettable oversight.
6. Multimodal Connectivity: Why didn't we synchronise air travel with surface modes of transport to create a seamless travel experience for passengers?
7. Non-Aeronautical Revenue: Why don't we proactively explore non-aeronautical revenue sources, such as retail, advertising, and car parking, to boost airport finances?
8. Resource Utilisation: Why aren't we utilising our resources in non-aviation activities to maximise revenue generation and ensure optimal utilisation of airport assets?

To address these challenges, several tangible solutions can be implemented:

Need for a Holistic Approach

The underutilisation of new airports and the discontinuation of routes highlight the need for a more comprehensive and strategic approach to airport development in India. By addressing these critical questions and adopting a holistic approach, India can ensure its airport infrastructure is expansive, sustainable, and financially viable.

By implementing these solutions, India can move beyond the short-sightedness of merely building infrastructure and focus on creating a sustainable ecosystem for regional air connectivity. The ultimate goal should be to maximise the utility of existing resources while fostering economic growth and inclusivity in air travel.