Rajkot Airport’s International Flight Dilemma: AAI Considers Incentives
Lack of International Flights Since Inauguration
Since its inauguration by Prime Minister Narendra Modi on July 27, 2023, Rajkot International Airport (RIA) has yet to see any international flights. Despite the high-profile opening and a year passing since then, airlines have shown little interest in launching global routes from this newly developed airport.
Proposed Incentive Scheme by AAI
To address this issue, the Airports Authority of India (AAI) is contemplating an incentive scheme designed to encourage airlines to start international operations from RIA. This scheme would offer substantial discounts on various charges for a period of three years. The AAI plans to provide reductions on landing charges and route navigation facility charges (RNFC) as part of this initiative.
Details of the Incentive Scheme
The proposed scheme, still in draft form, aims to make RIA more appealing to airlines by reducing the financial burden associated with landing and operating international flights. Current AAI charges include landing fees, RNFC, terminal navigation landing charges (TNLC), and various user and security fees, with landing fees and RNFC being among the highest.
Development and Current Status of RIA
The development of RIA, costing Rs 1,405 crore, was undertaken in Hirasar village, approximately 30 km east of Rajkot. Despite handling around 10 domestic flights daily, the absence of international flights has drawn criticism, particularly from the opposition Congress. Bharat Boghra, BJP’s Gujarat state vice-president, had previously stated that international flights would commence after the completion of the terminal building, but the terminal is still under construction.
AAI’s Strategy to Attract Airlines
The AAI is aware that airlines may be hesitant due to concerns about passenger traffic and consistency in smaller centers like Rajkot. To mitigate these concerns, the AAI is designing a scheme with significant financial incentives to ensure that airlines find it viable to operate international flights from RIA even with lower passenger volumes.
Implementation and Feedback
The scheme will be open to both Indian and international carriers. Airlines that start international routes would initially pay all applicable charges but could receive a refund at the end of a 12-month period through a credit note. Airlines must operate a minimum number of eligible flights during both summer and winter schedules to qualify for these incentives. The scheme is pending final approvals from the relevant ministry.
Current Charges at RIA
At present, RIA charges approximately Rs 25,000 for landing an Airbus A320 and around Rs 14,000 for RNFC on flights to destinations like Delhi. Additionally, RIA collects a user development fee (UDFC) of Rs 625 per passenger, though TNLC is not yet applied.
