However, the challenges remain, with slow/poor decision-making and policies, red tapism, unrealistic demands by project-affected people (PAPs), etc, which may stop the sector from taking off to great heights.
The aviation sector in Mumbai, it seems, is in a transition phase — witnessing tremendous growth in passenger and cargo traffic in the past decade, ongoing redevelopment work at Chhatrapati Shivaji International Airport (CSIA) and "big plans" for Juhu airport, and possible breakthrough in starting work for the Navi Mumbai International Airport (NMIA).
However, the challenges remain, with slow/poor decision-making and policies, red tapism, unrealistic demands by project-affected people (PAPs), etc, which may stop the sector from taking off to great heights.
A recent study by the National Council of Applied Economic Research (NCAER) has pegged indirect contribution by CSIA-related construction activities to contribute Rs23.4 billion in income to the national GDP during the entire construction phase (2014–15 to 2018–19). Total passenger traffic at CSIA will reach 49 million by 2022–23.
CSIA's direct plus indirect (multiplier) income contribution to Maharashtra's economy annually will be 1.61% of the GSDP by 2022-23.
Similarly, the economic impact of construction activities at GVK SkyCity has also been calculated. This is a one-time impact and refers to the construction period 2014–15 to 2021–22. It will lead to 27,000 jobs directly and contribute Rs66.4 billion in income to the national GDP. In terms of indirect economic impact, GVK SkyCity will be able to contribute Rs171 billion in income and lead to 96,000 jobs.
Once completed, it will be India's first 24x7 business and leisure park with hotels, convention centres, retail entertainment centres, including theme parks and shopping malls; commercial spaces will be developed on the lines of Bangkok airport.
MIAL proposes to invest around Rs200 billion towards constructing the facilities at SkyCity, besides the investments that would be made by the selected developer on construction of various asset classes.
International Air Transport Association chief Tony Tyler, who was in Mumbai earlier this month, during a conversation with dna, said, "Terminal 2 and the new ATC tower at CSIA are impressive. The airport has really changed from my earlier visits."
CSIA is a landlocked airport located in one of the most populous cities in the world. This creates multiple challenges in its expansion to address growing traffic. Out of the 802.03-hectare airport land available, approximately 125 hectares are currently occupied by squatter camps. "Freeing airport land currently under non-aviation use is one of our objectives towards capacity expansion," says a MIAL official.
According to a report by aviation consultancy firm CAPA, though CSIA, which is run on the public-private partnership model, was handed to a private operator-led consortium in 2006, it has delivered significant benefits which have resulted in an increase in capacity and dramatically improved the quality of passenger experience. But cost overruns and continued uncertainty about the economic regulatory framework have created challenges for the airport operators, while steep increases in aeronautical fees and charges have not been welcomed by airlines and passengers.
However, airport security is one of the major concerns identified. According to security agencies, Mumbai has, on occasions, become the target of unlawful acts that threaten its safety and security. "The surrounding slums pose a serious threat," confirms a CISF commandant deployed at the airport.
With CSIA being among the world's busiest airports, Juhu airport has been gradually getting more attention to ease the burden on the international airport. The civil aviation ministry has revived the plan to extend the runway at Juhu airport into the sea to accommodate operation of smaller passenger aircraft. Additionally, though seaplane, which has been in the pipeline for the past two years, has started connecting the city to other parts of the state, the route from Juhu airport to South Mumbai, which will facilitate quick connectivity during office rush hours, is still stuck in red tape.
What remains to be seen is whether the Mumbai Metropolitan Region can boast of being the first in India to have two major airports. The ambitious Navi Mumbai project has been delayed by several decades due to environmental and land acquisition challenges. However, it has been promised that these will be addressed "soon" as the government has plans to land the first flight there by 2018-19.
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