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Congestion cost: Rs 500-cr ATF bill

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Shaheen Mansuri

Posted: Aug 31, 2010 at 0043 hrs IST

Mumbai Indian carriers wasted aviation turbine fuel (ATF) worth Rs 500 crore in 2009-10 thanks to incremental flying, a figure likely to cross Rs 650 crore this financial year. The incremental flying is necessitated by increasing congestion at metro airports which delays landing and getting parking space. Technical glitches and bad weather too lead to incremental flying. The wastage accounts for as much as 3% of the total ATF consumed by these airlines in FY2009-10. This is expected to rise to 5% this financial year.

Jet Airways with 89 aircraft had a fuel bill of Rs 3,758.39 crore for the year ended March 2010, and wasted as much as Rs 150 crore on incremental flying. Said Saroj Datta, executive director, Jet Airways: “Due to incremental flying arising from congestion at airports, the airline wasted 3-4% of fuel during 2009-10.”

With airlines bulking up their fleets to match demand, congestion has been on the rise. In Mumbai, India’s second busiest airport after New Delhi, delays in environmental clearance for a second airport proposed in Navi Mumbai have put additional burden on the existing airport.

Airlines say that though the process of upgrading and modernising airport infrastructure has started, it will take time as there is a tremendous backlog. Besides, all airlines are expansion fleet and hence, air congestion will increase with the limited infrastructure to support growth.

Carriers like Kingfisher Airlines and SpiceJet too waste fuel due to additional flying, say air traffic experts. While Kingfisher had a fuel bill of around Rs 1,802 crore, SpiceJet reported Rs 814 crore towards fuel cost, of which at least 3% would have been wasted due to additionally circling in the skies or weather issues or technical lags. Other carriers like Air India, Indigo and GoAir also are in a similar spot.

A Boeing 737 utilises 2,800 kg/per hour of fuel while flying and an Airbus 330 uses 4,000-5,000 kg/per hour.

Said Hormuz P Mama, an aerospace analyst: “A mid-sized airport can be completed from the start of construction to the start of operations in not less than about 36 months. In India, that time-scale could be much greater. Land acquisition issues still remain at Panvel in Navi Mumbai, and a large part of the land at Nevali, too, will need to be acquired, which itself will be a frustratingly lengthy process. Preparation of the detailed project report can begin only after all the clearances have been obtained for the airport.”

He adds that the Mumbai airport is heading for runway saturation by 2015. The airport’s two runways now handle about 32 aircraft movements per peak hour, with little potential for increasing it to 40 movements.

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Does Jairam Ramesh care? by suvichare on 31 Aug 2010

It is the ordinary passenger who ultimately pays for wasted fuel for planes hovering over Mumbai. This burden is also shared by the thousands of unskilled laborers working in the middle-east on petty salaries who are often cheated by agents for getting jobs. They toil in the heat, save money for visits to their dear ones. If they have to pay more fare why should JAIRAM RAMESH care. Like a magician he removes new objections from his hat to the Navi Mumbai airport.

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