Centre sees 200 low-cost airports in two decades

The central government is planning to build nearly 200 low-cost airports in the next 20 years to expand connectivity to Tier II and III cities.

By the time the country emerge as the third largest in the world in civil aviation next to the US and China, said Ashok Kumar, joint secretary in civil aviation ministry.

Kumar said that India will have 1,000 aircraft as against the 400 planes currently and will be a major hub of maintenance, repair and overhaul (MRO) in the Asia Pacific region. Besides low-cost airports, the ministry is also looking to construct 15 greenfield airports.

"The Airports Authority of India will invest Rs 1,500 crore for development of non-metro airports," he said.

"The idea is to expand/develop low cost airports to meet the demand for air travel. The non-metro airports presently account for only about 30% of the total air traffic, which is expected to rise to 45% in the next few years," he said.

According to Kumar, the industry was facing multiple challenges including high ATF costs, VAT, high landing and other operational costs and falling tariffs.

The state governments are not reducing the VAT (Value Added Tax) and other rates on Aviation Turbine Fuel (ATF), he said while announcing the fourth edition of the international exhibition and conference on Civil Aviation—India Aviation 2014, will get underway at the Begumpet Airport here from March 12.

The five-day event, jointly organised by the Ministry of Civil Aviation, Government of India and the Federation of Indian Chambers of Commerce and Industry, will be inaugurated by Union civil aviation minister Ajit Singh.