Opportunities in airport

Small Airport development opportunity in Gujarat

Gujarat possesses one of the largest airport infrastructures in the country, where an excellent trunk road infrastructure makes access to the nearest airport relatively easy. Thus most parts of the state are well covered in terms of access to an airport. However, specific demand for small airports / airstrips development at emerging Centres of Growth such as Special Investment Regions, ports, entertainment zones, Economic or industrial zones etc may arise.

Exhibit: Emerging Small New Airports and Airport Opportunities

Location Driver Connectivity
Present Status
Ankleshwar Chemical Industry in Bharuch Ankleswar area/ PCPIR Delhi, Mumbai Semi finished airport in dormant stage. Civil Aviation Dept. GoG plans to lease the airfield to local industries association to complete balance work at a cost of Rs 20 crore approx
Mandvi Development of Mandvi as Tourism Destination including for cruises Mumbai, international locations Airstrip with 5000 ft runway in operational stage. No Terminal building. Upgradation would be required.
Dwarka Tourism and pilgrimage destination. Development of Poshitra port near Dwarka Mumbai, Delhi
No plans as yet. Nearest airport is Porbandar, 150 km Requirement would depend on successful development of tourism in the area
Mundra Mundra Port and SEZ Delhi, Mumbai, International locations Aerodrome with 1900 m airstrip already established by MPSEZ Ltd. Will expand if required.
Ambaji Tourism and pilgrimage destination Mumbai, Delhi, Ahmedabad Civil Aviation Dept. plans to construct 7000 ft airstrip at a cost of Rs 10-15 crore under PPP format

While small airports may not be viable based on air side revenues alone, the following strategies could contribute in making them viable:

  • Bundling real estate development with airports development on PPP basis. Many states are already building airports in Tier II and Tier III towns through this strategy where the developer is allowed to commercial development of the site in an integrated manner so as to recover his investment by selling/leasing commercial property.

  • Operating small 40-50 seater aircraft where the fuel costs per seat kilometre are less than half of a larger aircraft. This can reduce the operational cost, thus making air travel cheaper.