Sky Is The Limit: How India's Airports Can Utilise Their Grounds Better

Air travel in India has been rising every year. According to International Air Transport Association (IATA) , in July 2015, domestic air travel grew annually at 28.1 per cent. This was the fastest annual growth in air travel in the world. In China, it was merely 10.9 per cent, and in the US, it was 5.9 per cent. International air travel is rising, too. However, to meet the needs of growing demand for air travel, India's airport infrastructure has to improve remarkably.

Taking a positive step in this regard, the Centre is in the process of reforming India's aviation policy and plans to expand Indira Gandhi International Airport's (IGIA) terminal 1D. IGIA also plans to build a fourth terminal and a fourth runway to handle increasing traffic in future.

A look at how this may help IGIA to raise revenues along with developing infrastructure in a better way:

Even though IGIA is spread over 5,100 acres, laws prevent the airport authorities from developing more than 250 acres of its land. While airports primarily carry people and goods, the best airports across the world have been utilising the real estate they own to raise revenues. Hong Kong International Airport, for example, has dozens of premium designer garment stores. Frankfurt has the world's largest airport clinic. 

Terminal 1D has the capacity to carry 13 million people annually, and after expansion, it is expected to be able to carry nearly 30 million people. Airport terminals are as crowded as central business districts (CBDs) of major cities. Aviation policy experts suggest that if IGI Airport uses real estate in a more profit oriented-manner, it will be able to become Delhi's second CBD, first being Connaught Place. This again will help IGI Airport's revenues to rise. 

A decade ago, the Ministry of Civil Aviation had planned to allow greater commercial development in the areas around India's airport. Now, if hostels are constructed around the airport, Delhi's hospitality industry will be better equipped to handle more traffic. 

When merely 250 acres of the 5,100 acres of land can be used for such commercial development, it will unnecessarily raise the price of utilities near airport. For example, if only limited hotel space is available around Indian airports, the rates charged by such hotels would be extremely high.