Regional connectivity has become a pious phrase with all governments past and present. It is so politically correct to sell the idea of connecting by air different regions of the country that all governments fall for it. The UPA government under Manmohan Singh promised it. So did the NDA government under Vajpayee. Indeed, all governments did it without exception.
But why did the concept of regional air connectivity fail to take off in right earnest despite all governments wanting it? The reason is that mere opening of airports and airstrips does not serve the purpose unless low cost regional airlines come up and start operations on commercial lines. The Governments—states or Centre—are in no position to do that themselves. Private operators will not get in unless they are assured of a legitimate return. The Centre, in the mid-eighties, once tried to run a regional airline called Vayudoot. It miserably failed. Some private sector airlines like Air Deccan and Kalinga Air too gave a try but they too folded up.
If the Modi government is seriously interested in pushing the concept of regional air connectivity, it must involve professional players, experts and policy makers to give it a practical shape on sound commercial lines. Otherwise, it will remain a mere pious intent.
In the much-awaited civil aviation policy ready to be announced any day now, the Modi government is considering capping air fare at Rs 2500 for any destination coming within an hour’s flight. This will be just a knee-jerk attempt to promote regional connectivity.
Capping air fare may work for sometime till the aviation fuel cost is reasonably low, like at present. But the situation may change as it has already started now with fuel costs going upward. The Government will not be able to dictate prices for long. There must be a permanent mechanism under which fare structure could be determined taking into account overall costs of operations and their returns so that regional carriers can do legitimate business. The government, of course, needs to create a strong regulator to take care of issues like safety and overcharging of passengers.
It is true that regional carriers cannot do business without subsidy which should be carefully calibrated to promote connectivity to different regions of the country. Regional carriers operating in mainland India, for example, cannot be equated with carriers operating in North East in terms of subsidy. But the subsidy should be for a limited period till the carriers become commercially viable on their own.
State owned airports and airstrips being the major infrastructure for regional connectivity, the government could think of giving minor stakes to regional carriers in the long run so that they do not desert the air operations on small issues. In other words, the involvement of carriers should be deepened in the regional air transportation.
Selection of places for airports/ airstrips meant for commercial operations in the past has been controversial. Several of them have been selected on political considerations and have become more of a liability to Airports Authority of India. They are drain on resources. They cannot function as regional airports. The AAI, for example, has over two dozen airports from where no scheduled commercial flights ever took off. According to civil aviation ministry, AAI spent Rs 298.60 crore during 2014-15 just to maintain them. Most of these airports came up on political pressure.
Take the example of Pathankot civil airport, inaugurated with much fanfare by former civil aviation minister Praful Patel and BJP MP from Gurdaspur Vinod Khanna. The AAI did not earn a single paisa from this airport in Punjab in three years between 2012-13 and 2014-15. The AAI had to , however, spend Rs 11.50 crore on maintenance.
Jalgaon in Maharashtra is another example where no scheduled flights operated since its inauguration by for former President Pratibha Patil in her home district in 2012.
It is common knowledge that MPs and politicians keep pushing for airport/airfield in their constituencies. The Government should resist such attempts and build facilities on professional grounds. There are a number of airports in the country which have been built due to political pressure and from where there are no scheduled flights. They include Cuddapah in Andhra Pradesh; Akola, Kolhapur and Sholapur in Maharashtra; Bikaner, Jaisalmer and Kota in Rajasthan; Salem and Thanjavur in Tamil Nadu and Cooch Behar in West Bengal.
All these airports may not be commercially viable for regional carriers. Hence, the necessity for subsidy. Of course, the subsidy could be shared between the Centre and the states as Finance Minister Jaitley suggested in his Budget speech in the name of promoting regional connectivity. (IPA Service)
INDIA
REGIONAL CONNECTIVITY MUST HAVE COMMERCIAL BASIS
AIRPORTS ON POLITICAL CONSIDERATIONS ARE BLEEDING CENTRE
Devsagar Singh - 2016-06-10 17:55
While presenting the union budget for 2016-17, Finance Minister Arun Jaitley said the Government plans to revive unserved and underserved airports in the country to give a fillip to regional connectivity. He also said that there are about 160 airports and airstrips with state governments which can be revived at an estimated cost of Rs 50 crore to Rs 100 crore each in parnership with the Centre.