The Hindu Business Line : ‘India could have space for low-budget airports’

Mumbai, July 4 While talks of developing 35 non-metro airports is still doing rounds, private airport developers are weighing options for terminals and even airports dedicated to low cost carriers at few locations.

Since GMR Infrastructure Ltd, the company undertaking the modernisation of the Delhi and Hyderabad airports, has made provisions for low-budget terminals in the above projects, GVK consortium, involved with the Mumbai airport modernisation, sees potential for low-budget airports in non-metro areas.

Speaking to Business Line, Mr Madhu Terdal, CFO- Corporate Strategic Finance, GMR, said, “Terminals specifically catering to low cost carriers can be developed by cutting on the frills generally provided at an airport, however , possibility of a dedicated low-budget airport seems distant in the Indian context, as it would not be very commercially viable.”

Viability

However, a senior official from GVK said, “Not only the development of aeronautical area, but developing of the city side too will be crucial for such concepts. The boost in income levels and other positive growth would make low budget airports viable in non metros. They can also be clubbed with the emerging idea of merchant airports where cargo operations from various textile, pharma or agriculture hubs could enhance their feasibility.”

Low-budget airport

India might still be jostling with the idea of low-budget airports, but there are models such as Gold Coast Airport, Australia, that already exist.

Elaborating on the model, Ms Carly Sommer, Gold Coast Airport’s General Manager Business Development, said, “An low cost carrier airport is different from other airports as it supports efficiencies demanded by low cost carriers. They include quick turnaround times, on-ground infrastructure that maximises passenger handling and ensures swift processing of passengers.

Ideally there are no aero bridges - which can create time lags in boarding passengers. Low-cost airports are designed and operated to be profitable for owners and ancillary services provided on site.”

Investment

On the investment front too, the building cost works out to be substantially lower keeping aero charges down. “Bare minimum facilities and quality passenger experience can be achieved through careful selection of retailers and food and beverage outlets. The focus is on the practicality of the structure away from the ‘architectural and design’ component,” she said. In fact, the Australian airport is also eyeing similar opportunities in India.

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