At least 20 cities in India will need a second airport by 2030

At least 20 cities in India will need a second airport by 2030, the initial findings of a study by the civil aviation ministry has revealed, two officers directly involved in the exercise said on condition of anonymity.

Mumbai, Delhi, Goa, Visakhapatnam, Jaipur, Pune, Ahmadabad, Rajkot, Patna, Kolkata and Bangalore are among cities that will need a second airport by 2030. By 2035, more cities will join this list. The study is still work-in-progress and will also calculate by when each airport will reach its capacity.

Once it is completed, the ministry will write to respective state governments, sharing the information and asking them to identify land for a new airport at least five years before the airport reaches its capacity.

India’s airports currently handle 183.90 million passengers a year, according to the 2017-18 data released by aviation regulator Directorate General of Civil Aviation. The number has grown in recent years. It was 158.43 million in 2016-17 and 134.98 million in 2015-16.

This year, it is expected to cross 200 million. Some of the bigger airports are already operating in excess of their capacity. For instance, the Delhi airport handled 63.5 million passengers in 2017, and is expected to reach 70 million this year and will start operating beyond its capacity. It is also among the busiest airports worldwide, according to Airports Council International (ACI).

For the first time, the Delhi airport breached the 60 million-mark in 2017, making it to the list of the world’s top 20 busiest airports. The Indira Gandhi International Airport also became the seventh busiest in Asia, ahead of Seoul, Singapore and Bangkok.

«The study should be completed by the end of this year, and the aim is to map the saturation point,» said one of the two officials mentioned in the first instance, a senior official at Airports Authority India (AAI), which is conducting the study.

«Some airports are already operating beyond the capacity but still have scope for expansion. But most of us agree that expansion is not matched with the growth in aviation sector, which is why we are observing congestion at airports. We do not want this when we are aspiring for one billion trips in next 15 years, up from around 200 million (trips a year) now,» the AAI official said.

The issue isn’t just passengers but also runways, flights, and parking slots for aircraft. The number of aircraft with scheduled airlines in India is 620 as on July 31, 2018, up from 448 in March 2016. India’s 17 scheduled airlines operated 9.22 lakh flights in 2017-18, up from 8.1 lakh from previous year. International aircraft movement was 3.79 lakh in 2017-18 against 3.45 lakh in 2016-17.

«When we are looking at saturation point, we are not only looking at terminal capacity. At some places we might not have space for another runway, while terminals can be expanded. But if the airport can’t handle more flights, there is no point in expanding the terminal. The study will reflect that and will also

point out the projected traffic so that expansion can be planned accordingly,» said the second person cited in the first instance, who also works for AAI.

In May, Hindustan Times had reported that at least 25 of the 50 busiest airports in India are already operating beyond their capacity, while almost all the others will reach optimal capacity in 2018-19.

The Cabinet Committee on Economic Affairs (CCEA) on May 2 approved investments in expansion and upgradation of integrated terminals in Chennai, Guwahati and Lucknow by AAI at a cost of Rs 2,467 crore, Rs 1,232 crore and Rs 1,383 crore, respectively.

Increasing capacity requires both development of greenfield airports and expansion of existing airports; the plan is to use AAI and also involve private firms.

AAI, which runs all the non-private civilian airports in the country, is in the process of implementing plans to create additional capacity in airports in Agartala, Patna, Srinagar, Pune, Trichy, Vijayawada, Port Blair, Jaipur, Mangalore, Dehradun, Jabalpur, Kolhapur, Goa, Rupsi, Leh, Calicut, Imphal, Varanasi and Bhubaneswar with a capital expenditure of Rs 20,178 crore over the next four to five years.

The private firms that run the Delhi, Bengaluru, and Hyderabad airports are also working on expansion plans that will require an investment of Rs 25,000 crore over the next five years.

«Airports are not just a shiny terminal building; airside is equally important… capacity of runway and taxiway also need to be expanded. More holistic action plans need to be developed for the modernisation of airports. AAI along, with private developers, should form a joint action group to come up with a modernisation plan,» said Mark Martin, founder and CEO of Dubai-based Martin Consulting

Source: AviationPros

India: Bidding for privatization of Dr Ambedkar Airport on Sept 28

The privatization of Dr Babasaheb Ambedkar International Airport at Nagpur is likely to see the light of the day as the five companies, selected earlier, will be submitted their bids on September 28 to officially kickstart the process. The company projecting maximum revenues to the airport would be selected and handed over possession of the airport within a month. MIHAN India Limited is supervising the process of bidding and transfer of airport to the private company.

MIHAN India Limited (MIL) was registered in June 2006 and it took over the airport management in August 2009. Eight years later, in 2017, the RFQ (Request for Qualification) tenders were floated and companies like GVK, GMR, Tata Realty, Essel Infra and PNC Infra were found eligible after the initial assessment.

The process of privatization of Nagpur airport was initiated several times earlier. However, it was pending since the airport was handed over from AAI to MADC in 2009. Even the new government took four and half years to start the process.

A new company with 74% percent partnership of selected private company and 26% partnership of MIL will be formed to execute this ambitious privatization project worth Rs 1,685 crores. The airport currently accommodates 20 aircrafts and this capacity will increase after its development.

The proposed works include:

. Development of second runway of 4,000 meters. 3,200 meters will be developed in first phase and 800 meters will be added in the second phase.

· The new runway will be suitable for landing and take-off of world’s largest aircraft A-300.

· New terminal building in 65,000 sqft area and 16 new parking spots.

· New ATC block, fire station and cargo building.

Process to take a month’s time
The privatization of Dr Babasaheb Ambedkar International Airport will take another month’s time to complete the process after bidding on 28 September. The selected five companies will submit their bids to the office of MIL. The tenders will be evaluated on the same day with the help of advisors and the company projecting maximum revenues to the airport will be finalized. After this, the transfer of airport will take a month’s time.

India: current outlook for aviation growth

Unprecedented aviation growth in India has brought into focus the need to create infrastructure ahead of demand. The Airports Authority of India (AAI) operates 129 airports across the country and to deal with traffic explosion, it has lined up a large capex plan that includes new terminal buildings and second airports for many state Capitals and strengthening of airside capacity. Airlines may need to pay a premium for peak hour flights even as more AAI airports begin functioning round the clock to cut congestion at peak hours.

AAI chairman Guruprasad Mohapatra spoke to Sindhu Bhattacharya of CNBCTV18.COM

We are responding to this by increasing the pitch for greenfield airports and proposing second airports for state capitals, definitely for Kolkata and Chennai. Discussion are on with state governments for land for second airports. For Pune the state government just indicated a place called Purandhare. Looking for second airports in Bhubaneshwar, Ahmedabad, Rajkot and many other places too. For Delhi and Mumbai, second airports are already in the offing. Bangalore and Hyderabad will hold good for some years.

Has capacity at AAI airports already been breached?
A: No, the capacity hasn’t been breached. (Figures his office provided show this fiscal, capacity at all AAI airports together will be 165.25 million passengers versus projected demand of 158.12 million. But it will begin falling short from 2019-20. Capacity will increase to 167.35 million but demand will outstrip it at 181.83 million passengers). Apart from second airports in state capitals, we are also augmenting capacity at existing airports. We have been increasing slots from winter schedule to summer each year.

AAI has earmarked Rs 25,000 crore capex for next 5 years, of which Rs 8000-10,000 crore has already been spent. We have identified which airport terminal building will be expanded, which runways will be strengthened. Wherever land is available we will do a parallel taxi track, more aprons and parking bays will be built. A new airport has come up at Pakyong and flights should start after monsoons. Second airport is being developed for Rajkot at Hirsar. We are also expanding terminal building and runway capacity at Jabalpur and Kolhapur besides building new terminal buildings at Guwahati, Leh, Patna and Imphal.

Do PPP airports of Mumbai and Delhi still contribute a significant share to AAI’s earnings?
A: Our dependence has come down as our non-aero revenues have increased significantly. Besides, the tariff order by AERA has reduced tariff incomes of these two airports from aeronautical activities. This has reduced their contribution to our earnings. Plus, our non-aeronautical revenue has increased from activities like shopping facilities inside terminal buildings. We are also trying to monetize land and are firming up a policy on how to do tendering for hotels. Identified land at 8-9 airports which can be thus monetized.
How much revenue would you raise from these activities?
A: Ideally, the non-aeronautical revenue should be 30-35%. Another couple of years we should reach this target, we are already fairly close to this at just about 30% now.

 

India: Master document for airport infra development to be out by August

The Centre would put in place a new model concession agreement (MCA) by August that would guide development of airport infrastructure across the country, including the Rs 20,000 crore mega international airport proposed at Jewar, Uttar Pradesh.

The MCA is being drafted by consultancy firm KPMG and would be out for stakeholder consultations by July end. In a recent meeting to review policy actions in the sector, junior civil aviation minister Jayant Sinha wanted the officials to prepare the MCA document on priority basis, as it will be the reference book for developing Jewar airport.
KPMG executives gave a presentation during the meeting and set August 14 as deadline for releasing the final MCA to stakeholders. They discussed various parameters such as tariff structure, concession period and annual escalation in yield, among others, in the run-up to submitting a draft of the key document.

State-run Airports Authority of India (AAI) has hired KPMG for drafting the MCA, the key document that spells out the policy and regulatory framework for implementation of a PPP project.

“Exact time for releasing the transaction structure for the greenfield side for public consultation would be finalised shortly,” said the minutes of the meeting reviewed by Financial Chronicle.

The national civil aviation policy (NCAP) requires calculation of airport tariff in all future greenfield projects on a “hybrid till” basis unless any other model is specified. Accordingly, non-aeronautical revenue to the tune of 30 per cent would be used for cross-subsidising airport charges.

The policy stresses increasing non-aeronautical revenue by better utilisation of commercial opportunities of city side land. An airport industry executive said that various state governments planning to build airports would use the Centre’s model concession agreement as a key reference point but they would be free to entirely adopt it or not.

“Its success would depend on investor interest in upcoming airport projects as they would bid keeping the terms of the document in mind,” he said wishing not to be named.

Junior aviation minister Sinha has advised the consultant to study all the best global practices before finalising the MCA so that any possible gaps could be avoided. Among other issues, the minister also wanted to know the steps taken for increasing the number of slots from 67 now at the congested Delhi airport.

Further, he directed the AAI to collect data of parking bays available at all airports including PPP and joint venture (JV) airports and share the details with airlines. This will help carriers plan their fleet and network expansion in the country.

Source: Deccan Chronicle. India.