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TODAY HINDI
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ISSUE DECEMBER 16, 2002
BOOKS
No-flight Zones
As air travellers suffer, successive
governments continue to invest in non-operational airports and neglect
metro airports that account for 78 per cent of passenger traffic
by Shankkar Aiyar and Shishir
Gupta
Daedalus,
the mythological Greek craftsman, created wings from feathers and wood
glued with wax for his son Icarus. Modern day Indian politicians have
tried to do a Daedalus too: they have spent over Rs 300 crore in the past
decade to build airports for their constituents. Money that could have
funded upgradation of decrepit international airports. Worse, unlike Icarus
who managed to fly before being singed, the constituents in question have
failed to even take off because neither the Indian Airlines (ia) nor private
operators find it profitable to use these airports.
Airports
There are no flights to 45 of the 125 airports.
Investments
In 10 years, AAI has sunk Rs 300 crore in these white elephants.
Flights
Six airports account for 67 per cent of flights.
Losses
114 airports lose Rs 185 crore. Only 11 are profitable.
Vijayawada
Investment: Rs 12 crore and Rs 9 crore
Date of decision: May 1995 and June 1998
Civil aviation ministers: Ghulam Nabi Azad, Ananth Kumar
No. of flights: Nil
Losses since 1998: Rs 3.89 crore
Politicians love Vijayawada. Mooted without any feasibility studies,
the airport has been backed by P.V. Narasimha Rao, Azad, Kumar, N.
Chandrababu Naidu and the late G.M.C. Balayogi. No operator or airline
has backed their visions with flights.
POLITICAL PURSUIT Debunking feasibility studies
on airports, politicians follow their personal agenda.
Jabalpur
Investment: Rs 8 crore
Date of decision: March 2001
Civil aviation minister: Sharad Yadav
No. of flights: Nil since September 2002
Loss: Rs 1.92 crore
Sharad Yadav, who studied engineering at Jabalpur, engineered a need
for scheduled flights to the city and upgraded the defence airstrip
to enable civilian flights. IA pulled out this September.
Pathankot
Investment: Rs 33 crore
Date of decision: November 2001
Civil aviation ministers: Sharad Yadav, Chaman Lal Gupta (MoS)
No. of flights: Nil
On June 29, 2001, the foundation stone was laid for a civilian terminal
at the Pathankot air base. In November 2001, the AAI sanctioned Rs
33 crore for infrastructure at Pathankot to promote tourism. To date,
no scheduled civilian flight has used the Pathankot airfield.
Purnea
Investment: Rs 30 crore
Date of decision: Awaiting NoC from Defence Ministry
Civil aviation minister: Syed Shahnawaz Hussain
No. of flights: Nil
Of the 41 million air travellers, Patna accounts for just 1.5 lakh
passengers and incurred a loss of Rs 5.91 crore in 2000-1. Yet Bihar
has been sanctioned two new airports: at Gaya at a cost of Rs 65 crore
and at Purnea.
INTERNATIONAL AIRPORTS STINK but little is
being spent on them. However, as much as Rs 447 crore is being pumped
this year into 23 loss-making airports.
Of the 125 airports maintained by the Airports
Authority of India (aai), 45 either don't cater to commercial flights
or are deemed non-operational. Of these, six have been added in the past
five years. In March 2001, the then civil aviation minister Sharad Yadav
invested Rs 8 crore in amenities and facilities for an existing defence
airstrip in Jabalpur and declared it ready for commercial traffic. The
decision was contrary to traffic projections. But Yadav, who studied engineering
at Jabalpur, engineered a justification and ordained that ia fly thrice
a week to the new destination. Less than a year later, ia has stopped
its flights and Jabalpur has been placed in the no-flight zone.
Jabalpur is not alone. Nor is Yadav one of a kind.
In November last year, his junior Chaman Lal Gupta sanctioned Rs 33 crore
to enable Pathankot to receive commercial flights. A year on, neither
has a single commercial flight landed at Pathankot nor has any airline
operator deemed it profitable to operate in the region.
True to form, successive governments at the Centre
have been consistently indiscreet in apportioning funds for unviable airports.
Last year, the Government cleared Rs 65 crore for building Gaya airport
in Bihar ostensibly to promote Buddhist tourism. It was, of course, the
Congress ministers who patented the technique of creating no-flight stations;
Nanded, Amravati and Kargil being some recent instances. As prime minister
of the United Front government, H.D. Deve Gowda got his civil aviation
minister C.M. Ibrahim to approve of an airport at Hassan even though there
were two other airports just outside the stipulated 150 km range. Mercifully,
the idea was abandoned.
As with the Railways, asset creation is mostly
a function of political calculation, not economic rationale. But unfortunately,
while trains can be flagged off on new routes, airlines cannot be forced
to fly to newly anointed airstrips, especially when there is little or
no traffic. The Kargil airport is a sterling example. Promoted by Ghulam
Nabi Azad during the Congress regime at a cost of Rs 37 crore, it is difficult
to envisage commercial airlines queuing up for air- traffic control (atc)
clearance to fly to Kargil situated as it is on the edge of the Pakistani
artillery range. Once when an aircraft-an AN-32 commandeered by former
Western Air Command Air Marshal Vinod Bhatia-did use the strip, it earned
the dubious distinction of crossing the loc and almost triggered a conflagration.
Now the Civil Aviation Ministry is trying to get the Indian Air Force
to adopt the station.
If you thought these experiences would have a
salutary effect, think again. Civil Aviation Minister Syed Shahnawaz Hussain
has asked the Ministry of Defence for a no-objection certificate (noc)
to allow commercial flights to Purnea. The estimated cost of enrolment:
Rs 30 crore. Hussain, however, denies the decision is political. "My
constituency is Kishanganj, not Purnea." He also disputes that this
is yet another white elephant on the aviation map. "I don't agree
that only metros should have airports. We have requests from MPs, and
Sahara Airlines wants to start a service from Purnea to connect north
Bihar."
Hussain also adds that the Government "is
looking at cutting losses by allowing operation of smaller airports by
private operators if they fly to these destinations or by nris".
At a macro level though he agrees that "setting up airports at places
where the possibility of flights is remote is not justified". But
it isn't just an issue of justifying building airports. The question is
of rational resource allocation. These airports are being set up at the
cost of critical facilities for passengers passing through major metro
airports.
Of the Rs 543 crore profit earned by the top 11
airports in India in 2000-1, nearly Rs 400 crore was delivered by the
international airports at Mumbai and Delhi but there is no plan to upgrade
either. This when there is also no disputing the fact that all airports
are badly in need of upgradation, from requiring new luggage trolleys
to better-designed user facilities. The delay in revamping could partly
be attributed to the logjam in the privatisation policy. However, the
main reason is that the profits are used to mop up the Rs 185 crore in
losses made by 114 airports.
Awaiting take-off Of the 125 airports maintained by the AAI, 45
don't receive any flights and cost almost Rs 45 crore a year.
FLIGHT OF FANCY Privatisation could speed upgradation
of airports, says Shahnawaz Hussain. But the policy has been stuck
on the runway for four years.
Even as passengers who pay for facilities at international
airports suffer broken escalators, lack of aerobridges, creaking trolleys
and a stinking environ, a major portion of aai's current expenditure is
on loss-making airports. As a former civil aviation secretary says, "While
the aai is interested in improving the infrastructure at airports in the
four metros, politicians have an agenda of their own." To appreciate
the magnitude of misplaced priorities consider this: this year, the aai
has spent Rs 143.38 crore on airports at Agartala, Bhavnagar, Dimapur,
Indore, Jamnagar, Jaipur, Kangra, Kargil, Lilabari, Ranchi, Rajamundry,
Nagpur, Pathankot and Vadodara-all loss-making airports. Add to this the
Rs 486 crore to be spent on 25 other airports, of which only two, Kozhikode
and Hyderabad, are profitable.
Hyderabad Investment: Rs 70 crore on extension of runway
Date of decision: October 2001
Civil aviation minister: Syed Shahnawaz Hussain
No. of flights: Over 30 a day
It is a busy and profitable airport. Yet extension of runway is
not viable due to obstructions in the path of a landing aircraft
such as a jumbo jet. The extension work is on even as a new international
airport is coming up at Shamsabad, 35 km from the city.
Kargil
Investment: Rs 37 crore (revised in February 2000)
Date of decision: July 1995
Civil aviation ministers: Ghulam Nabi Azad, Ananth Kumar
No. of flights: Nil
Built to increase interconnectivity and tourism in the snow-bound
Ladakh region, civilian usage of this airfield situated close to the
LoC has been virtually ruled out post-Kargil. Efforts are on to convince
the IAF to adopt this white elephant and use it as a forward air base.
Even the Rs 31.43 crore allocation this year for
extension of the runway at Hyderabad (see box) is backed by political
and not economic rationale. But Captain S.N. Reddy, aviation adviser and
special secretary to the Government of Andhra Pradesh, disagrees: "The
expansion is in keeping with the growth in international traffic. From
65 international flights and 14,000 passengers about three years ago,
the traffic has jumped to 224 international flights and 36,000 passengers
a month." Reddy adds that "aai can get back the money it invests
in two to three years". Considering that Hyderabad clocked profits
of Rs 4.57 crore in 2000-1, it would take at least 12 years for aai to
recover the Rs 70 crore investment unless the profits quadruple. Even
if they do, the expenditure flies in the face of the plans for a new airport
at Shamsabad, 35 km from Hyderabad.
The aai has spent just over 7 per cent of its
total expenditure on profitable airports. Worse, there is no plan or budget
of any significance on upgradation of airports in Delhi, Mumbai, Chennai
and Kolkata which appear more like railway junctions and less like international
airports. And this, four years after Prime Minister A.B. Vajpayee announced
creation of five world-class airports. The officials are, of course, at
pains to clarify that the delay in upgradation is not due to funds.
The Amendment Bill, 2000, paving the way for leasing
of airports to private investors, is irretrievably stuck with the Standing
Committee on Transport and Tourism. The Government has thus chosen a new
route for take off-joint ventures with private investors. Hussain explains,
"The atc and security functions will remain with the government,
while the upkeep and administration of airports will be managed by joint
ventures." He adds, "We are expecting the report from our consultants
any day and hope to transfer major airports to new operators by July 2003."
Given the ministry's track record, it's a claim
that invites scepticism. It took the Government four years to figure out
that the privatisation bill wouldn't take off before it returned to the
bay. The fact that the standing committee hasn't cleared the proposal
indicates political opposition.
Hussain, however, is emphatic that he is ready
to fly this time. "We will catch the flight," he says. Hopefully,
it will not be from Purnea or Jabalpur.