Govt-owned airports and Losses

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Airports owned by the government are likely to incur a loss of at least Rs 1,112.39 crore in 2014-15, a rise from Rs 1,087.48 crore incurred in the last fiscal.

These figures could rise, as the allocated expenditure is not included in these calculations. It is to be seen whether the losses will surpass Rs 1,546.84 crore incurred in 2012-13.

The figures for the facilities operated by Airports Authority of India (AAI) comes in public domain at a time the draft civil aviation policy talks about several initiatives for developing airports, including it as integrated multi-modal hubs.

Five out of 87 airports — Guwahati, Thiruvananthapura, Vishakhapattinam, Bagdogra and Behala — run by AAI are likely to make profits though the calculations have not included allocated expenditure, according to budget estimates quoted by Civil Aviation Ministry in Lok Sabha recently.

Guwahati airport, which made a loss of Rs 3.36 crore in the last fiscal, may garner a profit of Rs 33.36 crore this fiscal while Thiruvananthapuram could gain Rs 27.86 crore as against a profit of Rs 26.19 crore in the revised budget estimates of 2013-14.

Among the loss makers in this fiscal, Bhopal airport could be the first in the list with a likely loss of Rs 56.39 crore followed by Aurangabad Rs 53.09 crore, Allahabad Rs 52.18 crore and Bangalore (HAL) Rs 50.68 crore.

The losses incurred by the airports run by AAI are increasing year after year with 2012-13 witnessing 73 per cent rise in losses compared to 2010-11.While the losses incurred were Rs 895.39 crore in 2010-11, it rose to Rs 1,101.84 crore in the next fiscal. There was steep increase in losses 2012-13 to Rs 1,546.84 crore.

Admitting that the airports are incurring huge losses, Minister of State for Civil Aviation Mahesh Sharma said that the Airports Authority of India (AAI) has been taking several steps to make these loss-making airports “viable and profitable”.

“The losses incurred at various airports are primarily due to low air traffic movements resulting in lesser aeronautical revenue, low non-aeronautical revenue potential and basic operating expenditure on account of regulatory and security arrangements,” he said.

The measures included development of cargo activities, enhance of non-aero revenue through revision of rates, allowing operation of flying schools at non-operation airports and revision of base rates.

AIRPORT LOSSES

 

Year

 

Loss

 

2010-11

 

Rs 895.39 crore

 

2011-12

 

Rs 1,101.84 crore

 

2012-13

 

Rs 1,546.84 crore

 

2013-14#

 

1,087.48 crore**

 

2014-15##

 

Rs 1,112.39 crore**

# Revised Estimates

## Budget Estimates

** Excludes Allocated Expenditure

SOURCE: MINISTRY OF CIVIL AVIATION

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