200 low-cost airports to be set up in 20 years
The Government is planning to build airports in smaller cities in the next 20 years. The plan is to build around 200 low-cost airports, with infrastructure a little bigger than a railway station. Under the Greenfield Airport Policy, fifteen low-cost airports would be taken up in the next few years. The government believes that the small cities hold a lot of promise for growth of civil aviation industry.
Civil Aviation Joint Secretary G Asok Kumar points out that this will increase the aircraft fleet and the MRO (maintenance, repair and overhaul) business to a great extent. However, he refused to give any time lines for the plan. It is expected that the contribution of non-metro airports, which is 30% currently, is likely to grow at 45%. The number of aircraft operating in India will also grow from 400 currently to 1,000, in year 2020. India is likely to add 370 aircraft worth $27 billion by 2017 which will help the MRO business to grow from Rs. 2,250 crore in 2010 to Rs. 7,000 crore in 2020.
Kumar pointed out that our aviation industry is poised to emerge as the third largest player after the US and China. He was speaking at the India Aviation 2014 curtain-raiser press conference in Hyderabad. He added that the cost of operations is a pain point for the industry and the proposed low cost airports are likely to address that.
Source: The Hindu Business Line
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