Will MoCA's plan to build 21 new airports become a runaway of success?

Ministry of Civil Aviation (MoCA) has so-far accorded 'in-principle' approval to 21 airports including Mopain Goa, Navi Mumbai, Shirdi and Sindhudurg in Maharashtra; Kalaburagi, Bijapur, Hassan and Shimoga in Karnataka; Datia (Gwalior) in Madhya Pradesh; Kushinagar and Noida (Jewar) in Uttar Pradesh; Dholera and Hirasar in Gujarat; Karaikal in Puducherry; Dagadarthi, Bhogapuramand Oravakal in Andhra Pradesh; Durgapur in West Bengal; Pakyong in Sikkim; Kannur in Kerala and Hollongi (Itanagar) in Arunachal Pradesh. Out of these, 8 airports namely Durgapur, Shirdi, Sindhudurg, Pakyong, Kannur, Kalaburagi, Oravakal and Kushinagar have been operationalised.

Aviation continues to be a central subject which means that decisions pertaining to aviation and most certainly pertaining to bilateral treaties covering aviation are solely the purview of the centre.

For the airport to succeed, the ability to serve international flights remains critical. And it has already been announced that the airport will be an international airport in addition to the ones at Lucknow, Varanasi, Kushinagar and Ayodhya. Yet this requires expansion or amendment of air service bilaterals which then impacts jobs, employment and taxes and thus requires extensive engagement. Given India's market potential liberal bilateral treaties are much sought-after by countries especially city-states where aviation is critical to the overall economy. And for a bilateral to be fair and equitable, items of equal value need to be included. Concurrently the globe is witnessing a return to restricted access, health-security protocols and the emergence of nationalism — all impacting market access and the way governments think about bi-laterals.

The government will have its work cut out and ensure a delicate balancing act with appropriate support, messaging and stakeholder engagement.

Under Regional Connectivity Scheme (RCS), the Airports Authority of India (AAI) will connect 22 airports in the first phase. The 22 airports include three in Assam, two each in Uttar Pradesh, Punjab, Gujarat and Rajasthan and one in Andaman & Nicobar Islands.

The scheme plans to connect these underserved airports to key airports through cost-friendly flights. The flights are expected to cost around Rs2,500 for per hour. It envisages to provide subsidy to airlines to offer these fares. Also known as the Ude Desh ka Aam Nagrik (UDAN) Scheme. As of November 2021, 393 routes have commenced under the scheme connecting 62 unserved and underserved airports

While the benefits of these government initiatives are due to be realized, a more collaborative approach is needed to understand and address the specific requirements of the shippers in India, especially those from the thriving sectors of e-commerce, pharmaceuticals and perishable food products.

The allocations will be spread equitably across 5 regions -North, West, South, East and North East -to enable a balanced regional growth.