News & Views on Indian Real Estate

Monday, June 23, 2008

Developers plan to build low-cost airports

The financial turbulence that airlines are experiencing these days due to soaring fuel cost is pushing airport developers to think on lines of building low cost airports. Such airports would mean lower charges for airlines, helping their survival and also no extra charges for passengers that would help reverse the trend of lower demand. This thinking comes shortly after airlines are bleeding heavily due to high global oil prices and delayed payments to airports by them have become common. Recovering costs of fancy airports through levy of user development fee (UDF) has also become a touchy issue in these times of high surcharges and taxes. Fancy airports can either be built with government support or levying very high charges on airlines and UDF on passengers. In the current scenario, this is increasingly becoming a difficult option for cities where traffic is going to be less than 10 to 20 million. So low cost but ultra efficient airports are the need of the day Creation of low-cost airports with economical charges has been a major demand of Indian LCCs as they offer relatively cheaper tickets while paying the same amount as airport charge as full service carriers.

mansih said...

If this news is really true then traveling by air will also be possible for lower middle class income group people also.

Rajani said...

now a days, investment in airport and in such place is good deal.

vikas said...

Funds are not there for real estate market.Most of builders hold their projects.So its better choice to go for low cost projects.Even air port project involve lots of funds required.

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