Continuing its efforts to fast-track air connectivity within Maharashtra, the state government recently held a meeting with representatives of national carrier Air India (AI) and Airports Authority of India (AAI). A similar meeting was held last month with private airline operators.
Continuing its efforts to fast-track air connectivity within Maharashtra, the state government recently held a meeting with representatives of national carrier Air India (AI) and Airports Authority of India (AAI). A similar meeting was held last month with private airline operators.
Civil aviation sources said the meeting was chaired by chief secretary Swadheen Kshatriya. The state had a couple of years back formed a special purpose vehicle (SPV) to oversee the spread of aviation development in Maharashtra.
"AI said it is has no issue starting flights for centres which are commercially viable. However, the airline insisted that if the revenue falls below a certain limit, then government will have to chip in with some subsidies," said the source having direct knowledge of the development.
According to civil aviation ministry officials and tourism industry insiders, though Maharashtra is counted among the larger states in the country and is one of the top industrialised state, the penetration of air connectivity in smaller centres are not really encouraging. "Lack of required infrastructure is a problem, apart from poor commercial viability in many regions" said a senior AAI official.
Development of aviation not only helps in improving the GDP but also increases employment. Tourism too gets a push. In addition to it, the government also earns revenue from the development. For example, as per the sustainability report of 2014 for Chhatrapati Shivaji International Airport in Mumbai, during the year 2013-14, the revenue it generated of around Rs370.8 billion contributed 0.46% per cent and 3.49%, respectively, to the national and regional economy. In terms of employment, 1.42 million jobs were created and contributed 0.31% and 2.90% to the national and state's employment, respectively.
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