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Focus on regional airports is a bold move by Modi government, says KPMG

Stating that the focus on regional airports is a bold move by the government, KPMG said, it needs to focus more on the infrastructure development for them.

By: | Updated: September 21, 2016 12:02 PM
 Earlier this year Arun Jaitley said the government plans to develop 25 regional airports to improve air connectivity. Earlier this year Arun Jaitley said the government plans to develop 25 regional airports to improve air connectivity.

Stating that the focus on regional airports is a bold move by the government, KPMG on Wednesday told BTVI that it needs to focus more on the infrastructure development for them. Earlier this year Arun Jaitley said the government plans to develop 25 regional airports to improve air connectivity. He said the government is looking to develop 15 airstrips owned by the state governments and 10 that are with the Airports Authority of India (AAI). There are around 160 airstrips that are lying unused, he said while talking about the steps taken by the government for infrastructure development in the country. According to the minister, AAI would be able to fund itself from the money coming from Delhi and Mumbai airports.

Meanwhile, SpiceJet told ET Now that tariffs will remain low on back of low crude prices. It further said, “airline is focused on profitability and Bhutan is on its radar as an international destination.” The low-cost carrier recently said that Kolkata will become the third hub for the carrier’s domestic as well as international flight operations. The airline already has two hubs in New Delhi and Hyderabad. “We are looking at expanding domestic and international network from Kolkata. In the immediate future, departures will go up 40 percent from 15 to 21. Apart from adding two more frequencies to Guwahati, we will connect to Aizwal, Silchar and Gorakhpur from October 4. We will also connect Vizag and Jaipur from November-December,” Managing Director Ajay Singh said.

The government has been working on ways to bolster aviation sector, especially increasing regional connectivity amid rising number of air passengers.

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