Why India’s Regional Airports Struggle to Take Off

Puducherry Airport, once a symbol of connectivity and promise for this popular tourist destination, now stands as a stark reminder of the challenges plaguing India's regional aviation sector. The last commercial flight departed on 30 March 2024, leaving behind a silent tarmac and a trail of unanswered questions.

“Puducherry airport’s short 6000-foot runway which limits operations to smaller aircraft. While an extension toward Tamil Nadu is possible, the issue lies in land acquisition. Tamil Nadu wants the Puducherry government to cover the land cost, which the latter cannot afford. Ideally, the land should be provided free to AAI, but it's expensive,” Vijai Agrawal, ex-chairman of the Airport Authority of India told The Core.

SpiceJet, the last airline to brave these challenges, has since withdrawn its services, leaving the airport with no active airlines. Even newcomers like Akasa, eager to expand their regional footprint, are deterred by the operational restrictions that plague airports like Pondicherry.

A source aware of Puducherry Airport’s operations, speaking on condition of anonymity, explained the limitations imposed by the airport's Visual Flight Rules (VFR) status. "Planes can only land if visibility is 5000 metres or more," the source added. "During the monsoon or low-visibility days, flights can't land and must wait at another airport." This, disrupts the entire network, causing delays and cancellations.

The lack of facilities for night landing and advanced navigation systems further exacerbates the problem. As the sun dips below the horizon, the airport is effectively plunged into darkness, forcing airlines to cancel flights rather than risk operating in low visibility.

This is not the only case. From Jaisalmer in Rajasthan to Gondia in Maharashtra and even Pondicherry—once served by SpiceJet—many regional airports are struggling to justify their existence.

Experts point to a mix of limited demand, poor planning and airlines’ reluctance to serve routes deemed financially unviable. Some 90% of India's regional airports hence face similar challenges, ranging from outdated navigation systems and inadequate facilities to poor connectivity to urban centres. These shortcomings make them unattractive to both airlines and passengers, hindering their growth and contributing to their financial woes.

"Puducherry airport currently handles non-scheduled operations, with flights arriving and departing at varying times," the source from the airport said. "The airport incurs an annual loss of around Rs 25 crore, which is absorbed by the Airport Authority of India."

Building new airports in the regional areas of India is a part of the government’s ambitious plans to double the number of airports under the UDAN scheme, a regional airport development program of the government of India, but the reality on the ground is sobering.

Regional airports like Puducherry and Shillong—built with high hopes—struggle to sustain regular operations.

“Building more airports isn’t the answer. What’s needed is a rigorous feasibility study for each location, involving airlines in the planning process to ensure sustainable operations. They have network planning teams who can assess whether an airport will succeed or not,” Agrawal added.

Take Shillong Airport, for instance. Despite being the gateway to a popular hill station, it sees only two flights a day, connecting solely to Kolkata. “Most travellers, including myself, prefer Guwahati for its better connectivity and flight options,” C.K. Govil, President of the Air Cargo Agents Association of India (ACAAI) told The Core.

His observation reflects a broader issue: passengers and airlines alike tend to favour larger hubs over regional airports, often due to insufficient services and connectivity.

While government schemes like UDAN aim to democratise air travel, the reality is that nearly half of India’s airports operated at a loss in 2023. AAI, which manages about 133 airports out of which 110 airports are operational while the other 23 airports are non-operational, reported a net loss of Rs 856 crore in the financial year 2022-23, reflecting ongoing challenges in maintaining operational viability at many airports​.

Meanwhile, the average cost of building a regional airport in India ranges from Rs 150 crore to Rs 400 crore, depending on the size, location and required infrastructure. Greenfield airports can cost upwards of Rs 1,000 crore due to the need for new terminals, airside facilities, and land acquisition.

However, there are exceptions. The Telangana government, for instance, recently approved Rs 205 crore for acquiring over 280 acres of land to facilitate the development of Mamnoor Airport in Warangal. This proactive approach, coupled with the Airports Authority of India's commitment to fund the airport's infrastructure and operations, demonstrates that successful regional airport development is possible with the right kind of planning and investment.

Too Many Airports, Too Few Flights?

On September 27, under the Vikshit Bharat 2047 program, the Union Civil Aviation Minister Kinjarapu Rammohan Naidu said that it is seeking to increase the number of airports from 157 to 350 with an aim to boost tourism. But are these plans grounded in reality?

"The government is opening airports left, right, and centre, but the airfare costs are through the roof. Many are saying it's easier to take a bus, especially with the road infrastructure being so good right now. People simply can't afford these sky-high prices. And with terminal operators and private players trying to squeeze every last penny, it's turning into a real problem," Govil added.

As the aviation sector expands, the question remains: how can India’s regional airports avoid becoming empty monuments to misplaced ambition?

Even with the infrastructure in place, operational challenges remain. For smaller airports, it’s not just about meeting technical requirements—it’s also about economic viability.

Smaller aircraft often can’t operate profitably without subsidies, leading to sporadic or unreliable service.

“Demand is there, but the issue is the availability of the right kind of aircraft at the right price. In my opinion, any airport being developed should accommodate Airbus 320-class aircraft, with at least a 7500-foot runway because over the world there is no production happening for smaller aircraft, 4500- or 5000-foot runway isn’t enough,” Agrawal added.

There are very few small aircraft inventories that currently operate in Indian skies, leaving only Indigo, Air India, and struggling SpiceJet. Akasa has limited operations, and most airlines only have A320s, Boeing or ATR-72s.

But smaller aircraft like the ATR-72s are scarce, limiting connections to places like Pondicherry or Malda, where airport infrastructure remains an issue.

Jaisalmer Airport, which experiences seasonal demand from December to March, currently handles two daily flights from Mumbai and Delhi operated by IndiGo.

“IndiGo planned to introduce another service, ongoing aircraft shortages have hindered their ability to expand operations. Similarly, Akasa Air has expressed interest in servicing Jaisalmer but faces the same challenge of insufficient aircraft availability,” Sandeep Mahala, Airport Director, Jaisalmer Airport told The Core.

A similar story unfolds at Pondicherry Airport. IndiGo initially planned to connect it with Bangalore and Hyderabad starting October 27 this year but postponed the launch to December due to the same aircraft supply challenges.

Land Challenges

Land availability poses a significant hurdle for regional airport expansion across India. Puducherry, for instance, is restricted to operating smaller aircraft like ATRs and Bombardiers due to its limited runway length. Expanding the runway would be a costly undertaking, requiring significant land acquisition and construction, a challenge made even more difficult by the airport's location in a valley.

This difficulty in expanding runways and upgrading facilities is a common problem for regional airports across the country. Nationwide, expansion typically requires approximately 1000 to 1200 acres of land, a significant amount to secure given the high costs and bureaucratic hurdles involved.

The source from Puducherry Airport quoted earlier also emphasized the constraints this creates, stating, "If we have the right infrastructure, at least 10 flights can depart from here every day. But right now, we lack the necessary airport facilities. To build the airport infrastructure, the main challenge is securing the land.”

Despite government efforts to develop 100 new airports and revive 50 under the UDAN scheme, experts question the long-term viability of such projects. Many airports under this program operate with less than 10% occupancy, highlighting insufficient demand and poor planning.

“Airports shut down because they fail—often due to insufficient traffic or poor planning. Proper due diligence, like studying origin-destination traffic, is essential for each location. Just increasing the airport count to 300 doesn't make sense,” Agrawal added.

A successful airport isn’t just about having scheduled flights; it’s about having the infrastructure to support those flights effectively. Without the necessary facilities, even an airport with potential demand can struggle to attract airlines or sustain operations.

“For multiple airlines to operate in Puducherry, the minimum requirement for a runway that can accommodate an Airbus is a 2,300-meter runway, which we have. However, the runway should also have an additional 500 meters at both ends for the instrument landing system (ILS) approach, enabling aircraft to land with visibility as low as 1000 meters and more,” the source quoted earlier added.

This lack of foresight is a recurring issue at smaller airports, where the absence of scalable infrastructure often results in minimal or no scheduled flights. Airlines need more than just demand; they need runways, navigation systems, and the capacity to handle modern aircraft.