A Parliamentary panel has asked the Government to operationalise the old airports in Bangalore and Hyderabad without any delay.

The panel has expressed the “opinion” that, by closing these airports, the Government has “indirectly promoted the business interests of private airport operators.”

A consortium headed by the Bangalore-based GMR group is managing the new Hyderabad airport while a consortium led by GVK is now managing the new Bangalore airport. The old airports in the two southern cities were closed when the new airports became operational. The new airport in Hyderabad opened in March 2008, while that in Bangalore in May of the same year.

“The Government has opened a pandora's box and all concessionaires in future will insist on closing Government-owned airports to thwart competition. The Committee is of the opinion that the Government still has ample time to revisit the issue and make use of the closed airports which were built by tax payers' money,” said the Parliamentary Standing Committee on Transport, Tourism and Culture, which presented its report on Thursday.

The Committee has said that it considers the argument of the Government that the operation of two airports in the same city will jeopardise the safety of aircraft and create difficulties for ATC operations, “fallacious and erroneous” mainly because the old airports are still handling VIP and charter flights apart from helicopters.

Taking note of various cities globally where more than one airport co-exist, the Committee learnt that the old airport in Bangkok was closed completely when Suvarnabhumi airport opened in September 2006. “However, mainly due to demands of low-cost carriers and the higher cost at the new airport, the old airport (in Bangkok) was opened in March 2007. Another example brought to the notice of the Committee was of Dallas Love Field airport,” the Committee said.

User Development Fee

The panel also feels that the User Development Fee levied by private airports is uncalled for.

“The Government should have advised the private airport operators to tap the capital market to raise the required funds rather than imposing UDF on the public. At a time when air fares are already soaring, common passengers should not be burdened with UDF,” the committee states.