AAI is not interested to build low-cost airports

Airports - Industry Overview


For a while, AAI had been toying with a idea of building low-cost airports. It also sent a team to Singapore and Malaysia to study the models there. It seems it is not going for low-cost models, the reasons could be, flight penetration in India  is still low. We need loads of flight to put up a new terminal to have low costs airport. Another reason is the low cost service charges added up in the ticket eg. Rs.70 now forms a miniscule in a Rs.5000 ticket. Untill, we see a lot more UDF and ADF, people may start thinking of a low-cost vanilla airport.

It may be noted, earlier Deccan Aviation has tried to put up a low-cost airport, but the venture did not kick off.
 
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