Gujarat AAI‑Run Airports Lose Rs 818 Crore Over Ten Years
Gujarat’s aviation sector is facing a significant financial headwind, with a recent report revealing that eight airports managed by the Airports Authority of India (AAI) have accumulated a staggering loss of ₹818 crore over the past decade. This substantial deficit, detailed in a financial review spanning from fiscal years 2015-16 to 2024-25, underscores an urgent need for a strategic overhaul of the state’s airport infrastructure. The mounting losses, led by Rajkot and Bhavnagar airports, cast a shadow over the sustainability of regional connectivity projects and raise critical questions about the economic viability and environmental footprint of these public assets. As the state and national governments push for eco-friendly and equitable urban development, the financial performance of these airports demands immediate attention and a re-evaluation of their operational models.
The financial report, compiled by the Union Ministry of Civil Aviation, presents a stark picture of the challenges facing Gujarat’s public-sector-run airports. Leading the list of underperforming assets is Rajkot airport, which alone accounted for a loss of ₹418.67 crore. Bhavnagar airport followed with a loss of ₹122.08 crore, highlighting a broader issue of underutilisation and high operational costs across the region. This trend is further complicated by the fact that the state’s two major profitable airports, Vadodara and Surat, were not included in this particular analysis. Additionally, the privatisation of Ahmedabad airport four years ago further separates the state’s aviation landscape into a profitable, privately-run hub and a struggling network of public airports. The data signals a clear divergence in performance and raises questions about the long-term sustainability of the state-owned airport model.
Experts in the aviation and urban development sectors are calling for a multi-faceted approach to address the financial distress and align these airports with a sustainable agenda. A key recommendation is to transform these underperforming assets into eco-friendly, carbon-neutral hubs. This could involve significant investments in renewable energy sources, such as solar power, to reduce operational costs and their carbon footprint. Furthermore, integrating these airports into a wider, gender-neutral, and equitable economic ecosystem is crucial. This would mean developing them not just as travel terminals but as commercial and logistical centres that create a range of employment opportunities for all, from ground staff to local vendors, promoting inclusive economic growth.
The existence of 22 non-operational airports across India, including Gujarat’s Deesa airport, further highlights the systemic issues within the country’s aviation infrastructure. These unused facilities represent a significant waste of public funds and land resources. Rather than letting them remain dormant, there is an opportunity to repurpose these assets for more sustainable uses. They could be converted into green energy farms, logistics parks, or even educational and skill development centres, contributing to local economies without the environmental burden of a traditional airport. The imperative for officials and policymakers is to move beyond simply sustaining loss-making operations and to embrace a more innovative and sustainable vision for these critical public assets. This course-correction is not just a financial necessity but a societal and environmental responsibility, ensuring that Gujarat’s growth is both economically sound and ecologically conscious.
