Union Minister for Civil Aviation P. Ashok Gajapathi Raju said the proposed Bhogapuram international airport-Vizianagaram would spur economic activity and industrial growth in Andhra Pradesh.
Cargo business would be significant, with anticipated export of marine, pharmaceutical products and other goods.
The existing Visakhapatnam airport would handle only military-related operations as it was owned by the Indian Navy, he added.
Bhogapuram, 40 km from Visakhapatnam, comes under the Minister’s Vizianagaram Parliamentary constituency.
Mr. Raju said many reputed firms were keen to be associated with the government for the development of the Bhogapuram international airport.
“After the construction of Shamshabad international airport, air traffic has gone up significantly. It could not have happened if operations continued only at Begumpet airport of Hyderabad. The same is the case with Visakhapatnam. Increase in air traffic and full-fledged cargo operations will create employment opportunities,” he said.
The Minister said India could be the biggest aviation hub in the near future with increase in the number of air travellers.
“India was in eighth position in air passengers’ traffic a couple of years ago. But it has come to fourth position in no time. We expect further growth with improved air connectivity to new places. The Ude Desh Ka Aam Nagrik-UDAN scheme is creating wonders with the expansion of operations. More flights will be operated with the extension of the scheme in the second phase,” the Union Minister said.
The scheme had provided many benefits to the operators while helping passengers travel at affordable cost, the Union Minister said.
On disinvestment in Air India, he said many reputed organisations were keen to take over the business of its subsidiaries such as Air India Air Transport Services Limited.
“Bird Group is interested in ground handling activities while Indigo has expressed its desire to take up Air India’s foreign services. Many more proposals are there,” the Minister said.
No operational losses
“As an airline, Air India has been providing services to passengers in a flawless manner. It has not incurred any operational losses in the last couple of years. But accumulated losses are a concern,” the Union Minister added.