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power is bound to rise with increasing number of flights and the addition of new airports. There is a shortage of flying instructors due to unattractiveness of the profession, which is ultimately leading to shortage of pilots. Land acquisition: The land acquisition for development of airports has been one of the main challenges which the government is facing. In many cases, even though the government owns the land, there have been difficulties in using it for airport development typically due to resistance from the unauthorized slums who encroached upon it. Poor maintenance of land records has been another hindrance towards the acquisition of land. Closure of Old Airports: The old airports at HAL, Bengaluru and at Begumpet, Hyderabad have been nonoperational since the inception of new private air ports, BIAL and HIAL. The old infrastructure is wasted and is not utilized. These issues undermine the competitiveness of Indian air cargo industry and the trade potential; there is immediate necessity to address the issues. The amount of air cargo is growing steadily, according to AAI estimates by 2012 the total air cargo traffic is expected to reach 2.68 million tonnes, but the infrastructure related to cargo handling and evacuation is not growing at the same pace. There is a greater need to efficiently utilize the existing infrastructure, space and equipment and at the same time implement the planned infrastructure in a timely manner. In addition, a collaborative effort is needed between all the stake holders concerned in order to establish world class air cargo networks system for India. The following key infrastructural reforms and policies are critical for India’s continued growth in the aviation sector: Uniformity in taxes on ATF fuel: Government should take necessary measures to remove the disparity in prices of ATF in various states. There need to be a uniform ATF price across all states. The situation can be addressed by creating an environment of free and fair market competition in fuel
supply. It is critical and urgent that ATF be declared as a GOOD. Congestion: The government authorities and airport operators should implement suitable technology that would result in effective air traffic management. There is a need to add extra parking bays and taxiways to mitigate the congestion. High Airport Charges: Low non-aeronautical revenue is forcing the airports to collect high airport charges airline operators. Airports need to tap the non-aeronautical revenue in order to bring down the airport charges levied on airline operators. Manpower Shortages: In case of pilots, this issue can be addressed by building world-class training institutes and encouraging tie ups with various airlines. Appropriate measures are needed to be taken in order to make the profession of flying instructor more attractive. Setting up of Aircraft Maintenance Engineering institutes or incorporating such courses in premier colleges across the country can address the shortage of Air craft maintenance engineers. It is of importance that fiscal incentives be provided for setting up such institutions. Land Acquisition: There needs to be suitable provisions for facilitating smooth acquisition of land for airport development or extension without undermining the stake holders. The land should be acquired in advance before any project starts in order to reduce the delays in the project implementation. Government would be required to incorporate suitable provisions facilitating a smooth land acquisition process without undermining any of the stakeholders concerned. The land should preferably be acquired in advance by the government. Usage of Old Airports: The closed airport space can be used as maintenance shed for maintenance and repair of aircrafts, they can also be used for aircraft parking and air taxi service. This will considerably bring down the congestion at the existing metro airports. The closed airports can also be used as secondary/low cost airports for LCC aircrafts thereby ensuring fuel efficiencies and quick turnaround time. LOGISTICS TIMES November 2010