India to Have More Than 100 Airports - Kulwinder Singh Kohli - Frankfinn Group

GURUGRAM, India, December 28, 2018 /PRNewswire/ --

The aviation market in India is experiencing the fastest expansion in the world. According to the International Air Transport Association (IATA), India would reach 487 million passengers (based on trips) by 2036. While it is an enviable position to be in, there is just one roadblock in this unprecedented growth of the industry - the country's airports are currently straining to meet the rising demand. With an increase in the weight of footfalls and the airside capacity squeezed, the Indian airport infrastructure has creaked under pressure and a steadfast build-up in airport capacity is what the country needs urgently.

The airports at four metro cities in the country - New Delhi, Mumbai, Hyderabad and Bengaluru - cater to nearly 55% of the country's total air traffic and are operating at near-full capacity. India's top ten airports handled 232 million passengers in 2018 in comparison to just 124 million in 2013. This feverish growth in domestic aviation in the country over the last several years brings forth the need for more airports in the country. To handle the steep rise of the passenger influx, an investment of Rs 25,000-30,000 crore would be required to expand their capacity by 2021.

The current airport capacity in India is up to a maximum of 317 million passengers and the year's traffic is expected to be around 300 million. The statistics revealed by the Centre for Aviation's (CAPA) cautions that by 2022, India could exceed its maximum structural capacity. In fact, it could happen even earlier if we witness a faster growth rate of more than 10%. According to CAPA, to create an additional capacity of around 500-600 million passengers, India will need around 55 more airports by 2030 which will require an investment of around $36bn to $45bn.

The government is quite aware of this dreadful situation and in line with the growth trajectory and the rising needs, the consent for the construction of 18 airports has already been given by the Government in order to reduce the load on the major airports and provide connectivity to the smaller towns.

India, recently, achieved a milestone with its 100^th airport becoming operational in Sikkim. One of the 18 approved airport projects; Pakyong Airport in Sikkim has been built in inhospitable terrain, at a height of 4,500 feet, at an estimated cost of Rs 350 crore.

Another upcoming airport is the Mopa Airport in Goa, which is being developed by GMR after winning the bid at Rs 3,100-crore on a public-private partnership basis with the state government. In addition to this, the passenger facilities such as the terminal building at the existing Dabolim Airport will also be improved as AAI plans to invest Rs 400 crores in this regard. The Navi Mumbai International Airport is another major airport aimed at easing air traffic congestion at Chhatrapati Shivaji Airport that is being developed by the GVK with an investment of Rs 16,000 crore. The other under-construction airports include Karaikal in Puducherry, Bijapur, Gulbarga, Hasan and Shimoga in Karnataka, Kannur in Kerala, Dholera in Gujarat, Sindhudurg in Maharashtra and Bhogapuram in Andhra Pradesh.

Furthermore, in the next 15 years, the Government plans to establish around 100 more airports at an estimated cost of Rs 4 lakh crore, as was highlighted by the Minister of State for Civil Aviation, Jayant Sinha, recently. Among the suggested 100 airports, 30 airports will be secondary airports or an expansion of the existing ones while the remaining 70 airports will be at new locations.

The government is focusing on taking 15-20 years view on airport infrastructure development. In the budget for FY 2019, the government announced a NextGen Airports for Bharat (NABH) Nirman scheme to expand airport capacities to more than five times. Under this scheme, the investments are to be made by both the private sector and the state-owned Airports Authority of India (AAI) for the airport upgradation, in the due course of time.

However, the question remains how will India finance the required expansion?

The Civil Aviation Minister, Jayant Sinha had said in an interview that the bulk of the investment would come from the private sector.

According to Neeladrinath Sarangi, Senior Manager at CAPA India, "The government's plan to build 100 more airports is an ambitious target as when you look at the track record of execution, historically it has been very difficult to develop infrastructure on a scale and at a pace that has been envisioned here. Starting from capital investment, land acquisition, getting approvals, all of that will take time."

Moreover, "The experience of private airport developers is somewhat mixed. They have developed very good airport infrastructure, but not all of them have made significant returns. So in terms of the financing side, getting private interest will not be very easy," he added.

Also, the IATA's Chief, Alexandre de Juniac cautioned the Indian government, "Airports need to be developed first and foremost as a catalyst for economic development. That means putting the needs of the aviation front and centre." He asserted that the Indian government must play a leading role in infrastructure development and focus on airports as important long-term drivers of India's prosperity.

Airports play a vital role in the economic development of the country and as Indian airports continue to rank among the world's best, there is a need for more world-class airports to meet the growing demand for air travel. India definitely has the capacity to develop effective infrastructure; it needs to develop and implement a comprehensive airport plan to support the growth in order to eliminate the bottlenecks in the path of fulfilling the needs of travellers and the economy. While private sector investment can provide short-term solutions, national interest may be best defended when the government owns the assets and manages it as critical economic enablers.

About Kulwinder Singh Kohli

Mr Kulwinder Singh Kohli, is a super successful lawyer and the legendary founder and non-executive Chairman of the well-diversified Frankfinn group. This Indian business tycoon had setup the business with 40K INR and guided its growth to the current worth of approximately 1500 Crore.

The visionary in Mr Kulwinder Singh Kohli lead him to explore the potential in Aviation industry and start the Frankfinn Institute of Air Hostess Training. Today, this Institute is ranked as the World’s number One Air Hostess Training Institute. It is transforming lives of many thousands of aspirants for jobs of Air Hostesses, Flight Stewards and Ground Hostesses, Air Ticketing Executives in Airlines and Guest Relation Executives, Front Office Executives in Hotels, Travel Industry and Customer Service Industries, empowering them with world-class opportunities across India.

As per Mr Kulwinder Singh Kohli, the Quality Training & Excellent Placements Track Record have always been the hallmarks for Frankfinn. This has been recognised through many awards received by the company such as the 'Best Training Partner 2017 - 2018' from the  Tourism & Hospitality Skill Council, Award for 'Best Air Hostess Training Institute' – EIGHT times in a row and the award for the 'Best Higher Vocational  Institute for Skill Development – 2018' for the third  time in a row from ASSOCHAM. The company’s placements’ record has also been highlighted in the Limca Book of Records many times.

Talking about his plans for the future, Mr Kulwinder Singh Kohli said, “Within the next five years, our vision is to become one of the top ten companies globally in the aviation and entertainment/music industries. To achieve this, we are contemplating major expansions and diversifications. We plan to soon launch our own regional airline called ‘Air Frankfinn’.”

About Frankfinn   

Pioneers in Air Hostess Training, Frankfinn Aviation Services Pvt. Ltd. provides vocational training to aspirants for jobs of Air Hostesses, Flight Stewards and Ground Staff, Air Ticketing Executives in Airlines and Guest Relation Executives, Front Office Executives in Hotels, Travel Industry and Customer Service Industries, empowering them with world-class opportunities across India. Frankfinn is the only institute in India with an exclusive worldwide tie-up with ICM, an institute of repute in the UK, having tie-ups with various reputed Universities, Colleges and Institutes across the Globe. For more information, visit: https://www.frankfinn.com/

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