Why Are Only 22 out of 148 Operational Airports Making Profit?

India’s Civil Aviation sector has shown remarkable growth over the last two decades; however, it has not fully capitalized on the opportunities presented by the nation’s thriving economy and demographic advantages. According to a report by a Parliamentary panel headed by Rajya Sabha MP Sujit Kumar, only 22 out of 148 operational airports in India are currently making profits. This news comes as a wake-up call for the country’s aviation industry, urging policymakers to address the challenges hindering its full potential.

Low Number of Operational Airports and Profit-Making Ones

The panel’s report highlights the concerning fact that India, with a population of approximately 1.4 billion people, has a relatively low number of operational airports. With just 148 airports in the country, there is a significant need for further expansion to accommodate the growing demand for air travel and cargo transport. Moreover, only 22 out of these 148 airports are currently operating at a profit, indicating a gap in the financial viability of many airport projects.

Slower Pace of Airport Expansion

Despite India being the world’s fastest-growing aviation market, the pace of airport expansion has not been commensurate with the surge in demand. This disparity is affecting India’s ability to meet the booming air travel needs of its citizens and impeding overall aviation growth. The government’s plans to boost airport infrastructure are commendable, but the report emphasizes the need for proactive measures to overcome delays in project approvals and land acquisition issues.

Challenges Faced by Indian Carriers

The report acknowledges the phenomenal growth in air traffic but notes that most Indian carriers are struggling with financial losses. In light of this, the panel underscores the importance of cost-effective operations and long-term sustainability for airlines. Addressing these challenges is vital to ensure the viability of Indian carriers and strengthen the aviation sector as a whole.

Enhancing Passenger Experience and Operational Excellence

The panel emphasizes that civil aviation is a customer-centric industry and must prioritize consumer interests. To achieve this, the Airports Authority of India (AAI) should focus on enhancing passenger experiences and operational excellence at its airports. By matching the service levels of public-private partnership (PPP) airports and meeting international standards, India can elevate its aviation industry to new heights.

Time-Bound Development of Airport Infrastructure

Airport infrastructure projects are capital-intensive and often have a long gestation period. Past experiences have demonstrated delays in obtaining key approvals and land acquisition, leading to cost escalations and time overruns. The panel strongly recommends that the government proactively obtain all pre-project clearances and ensure time-bound completion of planned airports to avoid such setbacks in the future.

The report by the Parliamentary panel sheds light on the challenges facing India’s aviation sector despite being one of the world’s fastest-growing markets. It urges the government and relevant stakeholders to take proactive steps to increase the number of profit-making airports, enhance passenger experiences, and ensure the timely completion of infrastructure projects. By addressing these issues, India can fully harness the potential of its civil aviation sector, fostering economic growth and meeting the increasing demand for air travel in the years to come.

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