India is set to introduce financial incentives for airlines to operate flights to underutilized ‘ghost airports,’ aiming to revive dormant infrastructure and optimize billions of investment. This move targets improving regional connectivity, supporting local economies, and leveraging existing airport capacities that currently face negligible traffic
In an effort to revive India’s numerous underused or "ghost" airports, the government is planning financial incentives aimed at encouraging airlines to resume or start operations at these dormant hubs. With over a dozen airports registering nearly zero commercial flights recently, the initiative comes as a strategic solution to justify prior infrastructure investments and improve regional air connectivity.
Key highlights of the plan include:
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Subsidies for airlines flying to less trafficked airports to reduce operational costs and make routes viable
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Capping airfares at about ₹2,500 per hour of flight time to boost affordability for passengers
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Shared cost burden between central and state governments to sustain these operations
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A direct effort to breathe new life into airports built amid India’s recent infrastructure boom but left largely unused due to low demand
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Proactive steps to integrate remote areas with the national air network and stimulate local economic activity
This proactive policy targets the efficient utilization of existing assets in a country where airport infrastructure outpaces current flight operations, aiming to bridge the gap between capacity and actual use.
Sources: Bloomberg News, NDTV, LinkedIn insights on India's aviation.