State govt can learn from Nepal, give incentives to promote aviation

The Central government has released a new aviation policy with much fanfare. It is a good time to reflect on aviation in Uttarakhand.  The Airports Authority of India (AAI) data show that the Dehradun airport handled 70,431 passengers in April 2016, an 82% rise over April 2015. Much of the increase came from the introduction of a fourth commercial carrier, namely IndiGo, and the addition of several daily flights. In other words, the Jolly Grant airport, which has taken three decades and cost hundreds of crores of rupees, is seen as a “success” for the tourism-dependent economy of Uttarakhand.  

Still, as statistics often do, this data mask the pitiful state of aviation in Uttarakhand and give no hint as to the enormous untapped potential, especially of short-haul aviation in a mountain state with poor, circuitous roads bedevilled by landslides, traffic jams, accidents and poor maintenance. Only two of the five airports in the state (Dehradun, Pantnagar, Pithoragarh, Gauchar and Chinyali Saud), near Uttarkashi, are operational.  While Dehradun is growing fast, Pantnagar has only a single daily small aircraft flight from Delhi of Air India. Pantnagar is a commercial failure, and often has had no flights at all.  Pantnagar has long suffered due to a poor location, though misleadingly advertised as “well located” for Nainital and the Jim Corbett Park.  Some have long touted Pantnagar as a “model industrial zone” but the zone is not too successful, and the Haridwar-Ranipur-Dehradun-Selaqui industrial belt is far ahead.

No flights to Mumbai, Dubai

The quick growth of Dehradun’s passenger numbers is misleading.  The airport ranks 37th in the country. All Dehradun flights are to Delhi, though the same airline’s continuing service is available to Bangalore, Hyderabad, Chennai and Mumbai.  There are no nonstop flights to Mumbai though about 2 lakh Uttarakhandis work in Mumbai and Navi Mumbai. Nonstop flights between Mumbai and Dehradun would surely be financially viable. At the famous Ananda resort, near Rishikesh, which is host to many celebrities, including Prince Charles and Oprah, many guests are rich visitors from Mumbai, yet they have to arrive via Delhi.  Thousands of students from Mumbai study in famous boarding schools of Dehradun and Mussoorie, yet they travel home via Delhi. Also, over 3 lakh Uttarakhandis work in the UAE and other Gulf nations, but Dehradun has no flights to the Middle East. Dubai has one of the biggest airports in the world, but there are no flights between Dehradun and Dubai. Around 20 Indian cities do have nonstop flights to Dubai. Clearly, with the new aviation policy easing norms on overseas flights, this would be an opportune time for the state to aggressively induce AirAsia, Indigo, Vistara and other carriers to introduce nonstop flights from Dehradun to Dubai.

Airstrips not utilised

The airstrips at Gauchar, Chinyali Saud and Pithoragarh are rarely used though the first two were vital for disaster relief works after the Kedarnath tragedy. Sparingly, the IAF has used them as advanced landing grounds, given the rising threat we face from the Chinese Air Force, which now has six full-scale bases in Tibet. There has been talk of the IAF further developing all three airstrips, but no progress has been made.  Some helicopter services do operate from Dehradun, such as seasonal pilgrim services to Kedarnath, they have a limited capacity and a few seats are available.  They often sell out months in advance. Clearly, there is room for much more helicopter traffic in Uttarakhand. 

Delhi to Pithoragarh for Rs 2,500 will be welcome 

Overall, aviation is a flop in Uttarakhand despite a vast potential.  For instance, a key factor that has inhibited aviation in Sikkim and Arunachal Pradesh, both also being sensitive border states, has been land acquisition for new greenfield airports and runway extensions. In Uttarakhand, there is no such problem.  Runways have already been built and all land have been paid for. To make flights to unused airstrips viable, it is vital that the state government itself require its officers to travel on these routes. As per the new policy, a Rs 2,500 fare from Dehradun to Pithoragarh or even Delhi to Pithoragarh would be of good value.  As proposed, a Rs 1,200 fare from Dehradun to Chinyali Saud, which would cut 4 hours from the journey to Gangotri, would be of tremendous value. The Centre has committed to compensating airlines for losses on such routes.

Short-haul aircraft being used in Nepal

Uttarakhand can learn from Nepal with which it has deep cultural and historical ties. Nepal is far ahead in terms of short-haul civil aviation. It has seven commercial airlines serving short-haul flight sectors—the state-owned Nepal Airlines and six others. Collectively, the airlines have 40-odd short-haul propeller aircraft of 10 to 40 seats each, exactly the types Uttarakhand needs for short-haul flights. These planes serve, via 100 plus daily flights, as many as 28 airports in Nepal while Uttarakhand only has one properly active airport. Moreover, a majority of passengers in Nepal are not foreign tourists but local people.

Aviation is critical for both tourism and broader economic vibrancy, especially in a nation like India with poor roads and huge point-to-point distances. Even relatively poor nations in Africa and Latin America learned that long ago. By global standards, aviation fuel is expensive due to Central and state taxes. Airport usage fees, aircraft parking fees and landing fees are also above the global norms. The new aviation policy seeks to make flights to small airports cheaper, but the fact remains that unless the state government takes the lead, nothing much will happen. All states want more service to small airports, not only Uttarakhand. The new aviation policy strengthens the hands of the airlines, which would naturally seek out the most profitable routes, which probably lie outside the hill state.

The cold truth is that all airlines are profit-seeking commercial entities that respond to financial incentives and disincentives. Nepal has long known that civil aviation is key and has imposed sensible tax policies, targeted subsidies and low airport usage fees. In India, only 75 out of the country’s 476 airports and airstrips are fully operational. Oddly, India has 1,216 commercial aircraft in use, but only 280 civilian helicopters. By the global norms, there should be more helicopters than aircraft, especially in regions with much difficult terrain, as in Uttarakhand.  

Instead of over-analysing the Centre’s new aviation policy, perhaps Uttarakhandis can learn from their neighbours in Nepal. The state government will have to provide strong incentives to airlines, over and above the Centre’s incentives, for aviation to develop.