No international flights a year since inauguration of Rajkot Airport, AAI mulling incentives for airlines

The AAI charges airlines in lieu of allowing landing of aircraft on its airports besides providing RNF through its air traffic control (ATC) towers, terminal navigation landing charges (TNLC), user development fee collection charges (UDFC), parking charges and night parking charges, aviation security fee etc. Landing fee, which is decided based on the maximum take-off weight (MTOW) of an aircraft, and RNFC are among the costliest of these charges.

The AAI has developed the RIA at the cost of Rs 1405 crore at Hirasar village, around 30 km east of Rajkot city on National Highway 27. The PM had laid the foundation stone of this greenfield airport in October 2017 and inaugurated it on July 27, 2023. Even as it handles an average of 10 domestic flights every day, RIA has copped criticism from opposition Congress for the absence of any international flights from the airport more than a year after its inauguration by Modi who had won his maiden election from Rajkot in 2002.

Bharat Boghra, vice-president of the BJP’s Gujarat state unit, had claimed on September 4, 2023, that international flights would begin “after April” once the terminal building was ready.

The terminal building remains a work-in-progress and AAI officers say that so far, no airline has submitted any proposal to launch international flights from Rajkot, the biggest city in Gujarat’s Saurashtra region. Rajkot is also a major hub of MSMEs manufacturing auto-parts, oil engines, forged steel products etc. RIA is situated near Morbi, the ceramic hub of India.

Keeping in mind these aspects, the AAI is devising a scheme to give incentives to airlines for three years to launch international flights from RIA. “Airlines are shying away from RIA apparently due to concerns about passenger traffic and consistency of such traffic in a small centre like Rajkot. But AAI wants the airlines to serve Rajkot also.

To make RIA an attractive and viable airport for international flights, AAI is mulling this scheme of providing substantial discounts to airlines in landing charges and RNFC,” an AAI source said. “The draft of the scheme is being considered at the highest level at the AAI headquarters and the incentives will be huge enough for airlines to operate international flights even at a low passenger load factor,” the source added.

The scheme will be available to both Indian and foreign carriers.

Sources said that the AAI had sought and have already received comments from RIA director Diganta Borah about the scheme. As part of the proposed scheme, airlines launching international flights would be required to pay RIA all the applicable charges as they do in routine course. At the end of the 12-month period of the scheme, the AAI would refund the incentive amount to the airlines through a credit note. However, to avail the benefit of the scheme, they would have to operate eligible flights for a minimum number of weeks during summer and winter schedules in a rolling 12-month period. “After due approvals from the Ministry concerned, the AAI is likely to announce the scheme,” they said.

Presently, RIA levies nearly Rs 25,000 as landing charges for Airbus-320-type aircraft, which can accommodate up to 180 passengers. This charge goes up if the aircraft has more MTOW. Similarly, it charges around Rs 14,000 RNFC for this type of aircraft for Rajkot-Delhi flight; the charges increase with distance of destination. Presently, RIA is not charging TNLC but collects UDFC at the rate of Rs 625 per passenger.

Meanwhile, Borah said that the terminal building is likely to be ready in a few weeks’ time, adding that RIA has already applied with the Ministries of Home Affairs and Finance for setting up customs and immigration counters at the airport. “The terminal building is likely to be ready by the end of October and it will be ready to handle passengers. Once the terminal is ready, space will be available for immigration desk and customs counter.

In fact, we applied for such a desk and counter with the respective Union Ministries in July this year and they are pending approval,” Borah told The Indian Express.

Presently, Ahmedabad and Surat cities in Gujarat have functional international airports. The state also has airports in Vadodara, Rajkot, Jamnagar, Bhuj, Kandla, Keshod, Porbandar, Bhavnagar and Amreli. “It is possible that the scheme incentive scheme will be made available to other airports, like Vadodara, as well,” AAI sources said.