Handling the rise in air traffic: A multiple-airport theory

Source – Indian Express

Date – 28.10.2017

Sub questions

What is the current state of airports in India with respect to the demand – supply proposition?

  1. The current capacity of Indian airports is 282 million passengers per annum, whereas the demand forecast for 2020-21 is 396 million passengers a year.
  2. The Airports Authority of India has written to West Bengal and Tamil Nadu for second airports in Kolkata and Chennai to handle the increasing number of air travellers
  3. 98 million passengers per annum capacity will be created in joint-venture, private, and state government airports.

What is the growth of domestic air traffic as per the data furnished by the DGCA?

As per data furnished by the Directorate General of Civil Aviation (DGCA) India’s domestic air traffic registered a growth of 16.43 per cent in September when airlines flew 9.5 million passengers compared with 8.2 million during the corresponding period last year.

Why is there a need for a second airport for many states?

  1. Rajkot Airport - The current Rajkot airport is spread over only 200 acres of land and it constrained without much scope for development. Despite tremendous demand but airlines find it unprofitable to fly there. Plans are being chalked out for development of a second airport 18 kms away on 240 acres of land.
  2. Similarly, the state governments of West Bengal and Tamil Nadu are also in the lookout for land to develop second airports at Kolkata and Chennai.
  3. Delhi and Mumbai, though, which are operated by private infrastructure developers, will soon see second airports in their regions. The second airport in the National Capital Region will come up in Jewar in Uttar Pradesh (located 72 km from Indira Gandhi international airport) , while Mumbai will see the newest airport coming up in Navi Mumbai region.
  4. KPMG’s partner and India head of aerospace and defence pointed out that India’s top 30 cities with airports will need a second one in the same city within a time frame of five to 10 years. There is an immediate need in Mumbai, Goa, Visakhapatnam, Chennai, Pune, Jaipur, Patna, etc. The first three have already been awarded to airport developers and the rest needs to move fast.

What is immediate challenge in constructing a second airport in cities?

  1. Land Acquisition presents huge challenge in airport construction.

What is the international experience on multiple airports?

  1. Several large global cities have multiple airports within them. The New York metropolitan area has three major airports — John F Kennedy International Airport, Newark Liberty International Airport, and LaGuardia Airport — apart from various other smaller ones.
  2. London, as well, for example, has six international airports — City, Heathrow, Gatwick, Luton, Southend and Stansted. UK Department for Transport said that without expansion, the airports will reach full capacity by 2034 on account of higher demand.

According to International Air Transport Association (IATA), how does India fare with respect to other countries in terms of rankings?

  1. Currently UK the third largest air traffic market is expected to fall to fifth place. This would be surpassed by India in 2025, and Indonesia in 2030.
  2. By 2036, India is expected to be placed third in the world.

What should be the key determinant behind a second airport?

  1. Airport construction is governed by 150 Km rule, i.e., no Greenfield airport shall be developed within 150 km of an existing airport, except till the latter has reached its saturation point. It has been proposed that this rule should be done away with.
  2. The key determinant should be the economic rationale behind the second airport.
  3. For fast growing cities, the second airport should be planned when traffic at the existing airport reaches around 50-60 per cent of its design capacity, given the time and complexities involved in land acquisition, airport bidding process and regulatory approvals.

What is the solution for the current bottleneck faced by the aviation sector?

  1. The IATA expects that airport infrastructure such as runways, terminals, and ground access are expected to come under strain going ahead. Increasing demand will bring a significant infrastructure challenge.
  2. The solution does not lie in more complex processes or building bigger and bigger airports but in harnessing the power of new technology to move activity off-airport, streamline processes and improve efficiency.
  3. Through partnerships within the industry and beyond, sustainable solutions for continued growth can be found.

MAIN QUESTION

Elucidate the need for a multiple airport theory in aviation sector for handling the rising air traffic.

As per data furnished by the Directorate General of Civil Aviation (DGCA) India’s domestic air traffic registered a growth of 16.43 per cent in September when airlines flew 9.5 million passengers compared with 8.2 million during the corresponding period last year. According to IATA, Currently UK the third largest air traffic market is expected to fall to fifth place. This would be surpassed by India in 2025, and Indonesia in 2030. By 2036, India is expected to be placed third in the world.

Several large global cities have multiple airports within them. The New York metropolitan area has three major airports — John F Kennedy International Airport, Newark Liberty International Airport, and LaGuardia Airport — apart from various other smaller ones. London, as well, for example, has six international airports — City, Heathrow, Gatwick, Luton, Southend and Stansted. UK Department for Transport said that without expansion, the airports will reach full capacity by 2034 on account of higher demand.

There is a need for second airport in many states as mentioned below:

  1. Rajkot Airport - The current Rajkot airport is spread over only 200 acres of land and it constrained without much scope for development. Despite tremendous demand but airlines find it unprofitable to fly there. Plans are being chalked out for development of a second airport 18 kms away on 240 acres of land.
  2. Similarly, the state governments of West Bengal and Tamil Nadu are also in the lookout for land to develop second airports at Kolkata and Chennai.
  3. Delhi and Mumbai, though, which are operated by private infrastructure developers, will soon see second airports in their regions. The second airport in the National Capital Region will come up in Jewar in Uttar Pradesh (located 72 km from Indira Gandhi international airport) , while Mumbai will see the newest airport coming up in Navi Mumbai region.
  4. KPMG’s partner and India head of aerospace and defence pointed out that India’s top 30 cities with airports will need a second one in the same city within a time frame of five to 10 years. There is an immediate need in Mumbai, Goa, Visakhapatnam, Chennai, Pune, Jaipur, Patna, etc. The first three have already been awarded to airport developers and the rest needs to move fast.

The key determinant should be the economic rationale behind the second airport. Currently, Airport construction is governed by 150 Km rule, i.e., no Greenfield airport shall be developed within 150 km of an existing airport, except till the latter has reached its saturation point. It has been proposed that this rule should be done away with.

For fast growing cities, the second airport should be planned when traffic at the existing airport reaches around 50-60 per cent of its design capacity, given the time and complexities involved in land acquisition, airport bidding process and regulatory approvals. However, Land Acquisition presents huge challenge in airport construction.

The IATA expects that airport infrastructure such as runways, terminals, and ground access are expected to come under strain going ahead. Increasing demand will bring a significant infrastructure challenge. The solution does not lie in more complex processes or building bigger and bigger airports but in harnessing the power of new technology to move activity off-airport, streamline processes and improve efficiency. Through partnerships within the industry and beyond, sustainable solutions for continued growth can be found.

Reference: