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Gujarat AAI Airports Suffer ₹818 Crore Loss in 10 Years: Urgent Revamp Needed in Aviation Strategy

In a concerning revelation for India’s aviation sector, Gujarat’s airports operated by the Airports Authority of India (AAI) have incurred a cumulative loss of ₹818 crore over the past decade. Despite the state’s reputation for industrial growth and connectivity, many AAI-run airports in Gujarat are running below capacity, struggling with low footfall, poor regional connectivity, and financial inefficiency.

According to the data sourced from Construction World, between FY2012-13 and FY2021-22, only two airports – Bhuj and Porbandar – have managed to record profits, while others like Kandla, Bhavnagar, and Jamnagar continue to be loss-making entities.

 Reasons Behind the Losses:

• Lack of consistent passenger traffic and airline operations

• Inadequate air connectivity between key economic hubs

• Overdependence on metro cities instead of promoting regional air routes

• Delay in implementation of the UDAN (Ude Desh ka Aam Nagrik) scheme in some regions

What’s the Way Forward?

Experts emphasize that to make these airports financially viable, the government and AAI must:

• Strengthen regional connectivity by incentivizing airlines to operate on less-lucrative routes

• Upgrade airport infrastructure with a focus on efficiency and sustainability

• Explore Public-Private Partnerships (PPP) to infuse capital and private expertise

• Promote cargo movement and tourism from tier-2 and tier-3 cities in Gujarat

Infrastructure vs Utilization Gap

While Gujarat has made strides in building infrastructure, this data reveals a clear gap between development and practical utilization. The airports have been created, but the ecosystem to support their full-scale usage has not matured.

Final Thoughts

The ₹818 crore loss is not just a financial figure; it represents missed opportunities for trade, employment, and connectivity in Gujarat. Immediate action, policy revision, and strategic planning are essential to turn these aviation assets into engines of regional growth.