The Hindu Business Line : Air Deccan consortium eyeing low-cost airport biz

“We are exploring opportunities in developing low-cost airports in small cities,” Capt G.R. Gopinath, Executive Chairman of Deccan Aviation, told Business Line.

Ready on the agenda are the four airport bids opened by the Karnataka Government for development.

The list includes Bijapur, Shimoga and Gulbarga. “We need to find new markets to have more passengers to fly. Otherwise it will be cannibalising into one another’s pie,” he said.

Capt. Gopinath was here recently to address the students of Indian School of Business on ‘In pursuit of a dream’.

Low-cost airports

Talking on the genesis of the idea of developing low-cost airports, he said it all began after his speech at Travel Agents Association meeting held here some time back.

“I suggested that States should not wait for the Centre to develop airports. They should build low-cost airports in smaller cities. They could give it to private parties,” he said.

But such airports are not revenue generators by themselves. They can be supported by real-estate ventures, which will earn revenues.

On the other hand, real-estate, without the airports around, will not give returns. They can go hand-in-hand to make them successful.

The idea gathered support, leading to the formation of the consortium.

Good potential

“There is a good potential for such airports across the country. For example, Andhra Pradesh and Maharashtra too are planning to build such airports at places like Nellore, Kadapa and Sholapur,” Capt Gopinath said.

To the ISB students, he related the saga of building the country’s first chopper services company for the public domain in the private sector and the low-cost airlines, and how they went on to become leaders in their respective areas.