Tamil Nadu regional airports losing money every year

Chennai: The regional airports of Tamil Nadu have incurred a loss of approximately Rs 235 crore (Rs 235.85) during the last five years – 2009 to 2014.  Of the seven airports (Coimbatore, Madurai, Puducherry, Salem, Tiruchy, Thoothukudi and Vellore) that figure in the AAI list, Coimbatore and Madurai airports have suffered major losses.

From 2009 to 2014, Coimbatore airport lost Rs 53.364 crore while Madurai lost a whopping Rs 120.47 crore during the same period. Vellore, which has remained non-operational throughout recorded Rs 62.79 lakh loss.

“If there is no traffic, how is it possible for these airports become profitable? There is so much cost involved such as maintenance, disbursing of salaries to police personnel along with many other factors which sees the expenditure going up day by day and losses will be there,” said  I.N. Murthy, Regional Airport Director.

Salem airport, in an industrial hub, also recorded losses except for two years in 2010-11  and 2011-12, after which it again slumped. “We wish to operate other flights and have given an application as we are looking to acquire 571 acres of land. But it is still in process,” said J. Selvakumar, Airport Director, Salem.

At present, only non-scheduled flights are operating here. “We are planning to extend the runway but land is required for it. Only if we can provide night landing facility are airlines interested in operating,” he said. Earlier, Kingfisher was the only airline operating to Salem.

“Airlines won’t operate unless they get traffic. Salem was inaugurated 20 years but nothing has happened as far development is concerned,” said Sudhakar Reddy, President, Air Passengers Association.

Patronage is decided by various factors depending on the demand. As far as AAI is concerned, only based on demand and availability of land is sufficient infrastructure with required facilities are created.

“Airlines make their own assessment through survey and based on the demand of trade and industry and they deploy the type of aircraft suitable for operation at the airport,” said Murthy.

Ministry of Civil Aviation is working on the national civil aviation policy where regional connectivity is one of the biggest components, said Sudhir Raheja, Member (Planning) & Member of AAI board.

“The Central government is formulating a policy on operationalisation of regional airports.” Looking at possible solutions to solve loss making, Bimal K. Srivastava, aviation expert, Aero Survey India, shares the opinion that states can follow the model of Stol-ports (Short take-off and landing airports). “These are small airports which are capable of providing low cost operations and are followed in countries like Norway, Canada and USA,” he said.

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