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Liberalised airports policy

The policy framework for the development of new airports announced by Union Civil Aviation Minister Praful Patel addresses several critical issues debated in the recent past. They include the question of cities having two airports which came into focus in the context of the ongoing projects in Hyderabad and Bangalore. The policy also seeks to give a new impetus to the setting up of private airports and heliports by empowering the Civil Aviation Ministry and the Directorate General of Civil Aviation (DGCA) to clear the proposals — they need not go up to the Cabinet any longer. Similarly, even greenfield airports that come up beyond the 150 kilometre radius of existing airports, can also be cleared by the DGCA. The Cabinet nod will be necessary only where a second airport is planned within the 150 km limit. In effect, space has now been created for any city to have two airports. However, it remains to be seen whether, in view of this, the government will review the commitments it has given to the developers of greenfield airport, especially in Bangalore, that the old airports would be closed. In fact, when the demand that the Begampet airport (in Hyderabad) and the HAL base (in Bangalore) be kept operational became strident, the Civil Aviation Ministry did indicate its willingness to have a relook.

As for the proposals for a second airport in Chennai and a new airport in Navi Mumbai, which fall in the less-than-150 km category and therefore require clearance by the Cabinet, the government would do well to act without loss of time. It is not uncommon for major metros and air hubs to have two or more airports. Given the space constraints for the expansion of existing airports, situated as they are very close to the city centre, new developments will have necessarily to look for locations away from the cities. With growing air traffic and the emergence of low-cost airlines that attract a new generation of travellers, separate terminals for no-frills airlines — as in Singapore — have become essential. To keep local transport and airport handling charges as low as possible, these airlines want a new genre of do-it-yourself airports. The decision on clearance for private airports will encourage corporates and aircraft-owners to create and manage their own facilities. For the smooth implementation of this policy, the Centre must first set up a Regulator, other than the DGCA, to resolve the problems and disputes that may arise in the liberalised regime. The DGCA must be left to focus exclusively on safety and operational standards.

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