Challenges in the skies

The Airports Authority of India AAI has been taking steps to increase capacity, but progress is slow.

Decision-taking is slow; when taken, implementation is weak. For example, the decision on a second airport in Mumbai has been pending for over 25 years. It is necessary to change the procedure for taking decisions and implementing projects. There must be baskets of projects that should be taken up as soon as traffic demand rises. Phase-wise master plans for airports must be prepared.

Physical facilities, while necessary, are not enough. The service infrastructure for passengers, as well as cargo, too needs beefing up. Security and immigration procedures need review to expedite clearance without compromising their spirit. Procedures for clearance of import and export cargo at airports should be better managed to reduce dwell time.

With the increase in traffic, access between the airports and city has become difficult 8212; and will worsen. Although it is not the task of airports to improve surface transport facilities, they are affected. It is necessary, therefore, for municipalities and state governments to improve access 8212; through, for instance, a rail link.

The Delhi and Mumbai airports are being privatised. Kolkata and Chennai are up next. More airports are proposed to be privatised later. The government has to ensure the private sector does not cut corners in providing facilities, especially those that impact safety and security. There should be a strong monitoring organisation, preferably within the office of the Directorate General of Civil Aviation DGCA.

Further, airports are monopolies and therefore there is a need for a regulatory authority to have some control over tariffs. It is proposed to establish an independent civil aviation economic regulatory authority CAERA to regulate airports. Airlines are expanding fast and are competing, which is good. But there is equally the possibility of cartel formation, through mergers. The scope of CAERA should, therefore, cover airlines as well.

The merger of the two state-owned airlines, while on the cards, needs to be managed efficiently. AAI and International AAI were merged several years ago, but even today there are two divisions operating in the merged entity 8212; National Airports Division and International Airports Division. The problem is of seniority, pay scales, promotion policy and such like. The government must not shy away from taking an efficient maybe hard decision.

The present share of Indian carriers in international traffic is around 30 per cent. Normally, it should be 50 per cent. This gap needs to be widened. Meanwhile, airlines are facing shortage of trained manpower, especially pilots. The institutions providing training need strengthening and expansion. New pilot training facilities should be created.

The rapid development of airports and air navigation services will require big money. Undue dependence on aeronautical charges would adversely affect airlines and air traffic, and hence needs to be discouraged. Emphasis should be to increase the share of non-aeronautical charges. Presently, the share of non-aeronautical charges in India is around 30 per cent; in many countries, it is over 50 per cent.

Providing connectivity to remote and backward areas at a reasonable price is a big challenge. The Route Dispersal Guidelines, which was introduced over 10 years ago to provide access to such areas, has outlived its mandate. Several alternative proposals have been discussed, but a decision remains elusive. Could regional airlines be the solution?

Finally, the civil aviation policy, which has been in the works for over a decade now, needs to be finalised soon. In its absence, ad hoc and undesirable decisions are being taken. The policy, once finalised, could be reviewed periodically. In fact, the government should consider formulating an integrated national transport policy, of which, civil aviation policy should be a part.

The flight path

8226; Spruce up airport and air navigation infrastructure

8226; Review security and immigration procedures for faster clearances

8226; Reduce dwell time of cargo

8226; Improve links between airports and cities

8226; Independent regulator for airports and airlines

8226; Increase share of non-aeronautical revenues

8226;More training institutes

8226; Connectivity to remote and backward areas

8226; An integrated national transport policy, of which, the civil aviation policy is a part