The top aviation industry players in the country feel that the government’s priority should be on transforming India into a global aviation hub and Delhi, Mumbai, Hyderabad and Bengaluru airports take a proportion of outbound Indian traffic via Singapore, Dubai and Abu Dhabi.
CEO of SpiceJet, Ajay Singh, says having regional hubs in the country would not be beneficial to just the two major players--Air India and Indigo--but to smaller players.
“All of us will be a beneficiary and it should be done quickly. We move slowly (on making a decision) and there is a lack of coordination (among stakeholders). Airports at Delhi, Mumbai, Hyderabad, and Bengaluru can take the proportion of traffic that flows outside via Singapore, Dubai and Abu Dhabi,” said Singh.
The government has been working to transform major Indian airports as international aviation hubs to provide direct air connectivity with countries in the east and west.
Presently, 50-55% of Indian passengers travel to Europe and the US via hubs such as Dubai and Abu Dhabi while those traveling to Australia, via hubs in Singapore.
Air India and Indigo’s move to induct wide-body aircraft keeps in mind the long haul and ultra-long haul Indian passengers, who otherwise are taken away by Middle Eastern carriers. The duo plans to acquire 170 wide-body aircraft in the next few years.
Delhi, Hyderabad, Mumbai, and Bengaluru planned as international transit hubs, require massive upgradation of airport infrastructure and passenger amenities and faster immigration and security facilities.
On ‘the likely evolution of India’s long-haul networks, hubs and aircraft, Lorie Argus, CEO Melbourne Airport said that opportunity in India is tremendous. “About 70% origin destination traffic between India and Australia still coming through connecting airport,” he said.
Campbell Wilson, MD & CEO, Air India, says India is at an ideal location geographically to serve regional hub serving Indian traffic in India.
“That would require more infrastructure facilities and better passenger amenities. The competition is Dubai Airport on one side and Singapore towards the east. So, it is not just big-ticket policy; some micro-policy issues need to be looked at,” he said while speaking at the CAPA India Aviation Summit.