How to turn Indian airports into South Asian travel hubs

About 20 million Indians will travel abroad this year. Many of them use hub airports in Singapore, Dubai, Qatar, Istanbul, London, Paris and Frankfurt although their destination may be elsewhere. “Hub” of the most successful international airlines outside their headquarters – if you fly Finnair from Delhi to New York, for example, first go to Helsinki (the Finnair hub) and take a connecting flight to NY. If you use Emirates, fly. first in Dubai.

It is estimated that Indians will spend the equivalent of $42 billion on foreign travel in 2024. A large proportion of this will be on airline tickets. Some of the money will also be spent in duty-free shops in overseas centers. If Delhi, Mumbai, Bengaluru or Kolkata airports were hubs, some of that money would be spent in India. Also, travelers from Sri Lanka, Bangladesh, Nepal, Myanmar, can choose to travel through India.

To make this happen, the aviation policy should examine the popular centers and replicate the conditions in Delhi, Mumbai and other big Indian cities. One factor is favorable geography. India already has this as it is conveniently located for travel to East Asia, the Middle East, East Africa and Europe.

Other factors are value for money and quality of airline services. Reports cite Indigo, Air India (and Vistara, which is also run by the Tatas) as potential candidates. They need to offer seamless connectivity, with flights at smart times, to as many high-volume destinations as possible. They also need fleets with sufficient capacity. This happened. Indian airlines have a large number of long and wide body aircraft on order. But improving connectivity will require complex negotiations as the government is involved in agreeing international flight rights.

You also need big airports with big terminals. These already exist. Delhi’s IGIA, Mumbai’s CSMIA, and the airports in Kolkata, Bangalore and Hyderabad are first class. More such airports are being built and upgraded.

Airports must invest in equipment that allows flying despite poor visibility and inclement weather. Every winter there are long flight delays in northern India due to smog, for example. More hangars and increased fuel capacity are also required.

Cutting the duty on aviation turbine fuel (ATF) may be a political consideration. ATF accounts for nearly 40% of the operating costs of Indian airlines. Competitors like Emirates and Etihad have an inbuilt advantage on cheap fuel.

Delhi is already among the 10 busiest airports in the world, with the capacity to handle 62 million passengers a year, and the intention is to increase this to 100 million. (Dubai and Chicago handle 60-65 million passengers each). There is room to offer first-class shopping experiences, luxury lounges, gourmet restaurants and bars in India’s most modern airports.

You also need excellent connections between airports and city centers, and between terminals. A passenger should be able to jump on the subway with luggage and travel to the city center with ease. Passengers should also be able to move easily between terminals without having to step outside. Ideally, the terminals should be connected by train shuttles. India is building meters quickly, but this is a pain point at the moment. You can get to Delhi Terminal 3 by metro, but transfers to Terminal 1 and 2 are done by bus. The physical infrastructure needs strengthening.

Other bottlenecks that irritate travelers include long lines, paperwork and other red tape. Security and immigration procedures should be simplified to ensure that passengers do not have to go through more checks or submit too many forms. Indian airports are notorious for having long queues and multiple security checks for those switching from domestic to international flights.

The immigration system is also slow and understaffed. Any seasoned international traveler is used to seeing closed counters and long lines at immigration. These processes need to be improved. Transit visas and e-visa processes should also be smooth and seamless.

None of this is impossible if there is the will to do it and the necessary coordination between the ministries concerned. The payoff would be huge. If Indian airports turn into travel hubs, the government could try to convince aircraft manufacturers like Boeing, Airbus Embraer to set up repair and maintenance centers in India. This could turn India into a repair and maintenance hub serving the entire region.