Airports in Telangana and Andhra Pradesh Accrue ₹1,861 Crore Loss Over a Decade
AAI airports run in Telangana and Andhra Pradesh (namely, Begumpet and Warangal) have suffered cumulatively a loss of rupees one thousand, eight hundred and sixty-one crore, over the last decade. Business leaders advise these unused airports to be connected through UDAN.
According to the latest figures released by the Airports Authority of India (AAI), seven of its airports in Telangana and Andhra Pradesh have raked up jaw-dropping losses between the financial years 2015-16 and 2024-25, with a cumulative appetite of 1,861 crore rupees. These losses run to more than 150 crore per year per airport.
The most striking of this however is the Begumpet Airport with a sole loss of 564.97 crore, making it the third least profitable airport in India; outstripped only by the Safdarjung (Delhi), and Agartala at this time of the year.
Other airports like Rajahmundry, Vijayawada or Tirupati have also played a remarkable role in the shortfalls in finances. Markedly, Warangal Airport, which remained non-operational since it was closed, still maintained a 5-crore loss incurred since 2015-16.
Industry analysts have identified these chronic losses to a number of key issues; specifically the widespread current under-utilization, the lack of commercial flights and more so at Begumpet since 2008 and non-aeronautical revenue sources. The workload is coupled with expensive operating costs involving runway maintenance, infrastructure maintenance, fire safety set-ups, and employee salaries all at a time when few people travel or use the airport commercially. Capt. CS Randhawa, who is the President of the Federation of Indian Pilots added his voice in this sentiment noting how even a rudimentary maintenance of the runways can get too costly in such circumstances.
To overcome these predicaments, the government, and other players in the aviation industry are appealing for more regional air connectivity by implementing the UDAN (Ude Desh ka Aam Naagrik) scheme. The across drive would reactivate non-operational airports linking them to tier-II and III cities which has the potential of impacting passenger traffic and revenue diversification.
Another complexity revolves around the redevelopment of Warangal Airport- redevelopment plans are stalled because Telangana has not surrendered yet a further 253 acres of land, which the AAI needs to proceed with the expansion of the airport. At this point just 700 acres of land exists, and construction depends on availability of the land and state government approval of the layout.
Looking Ahead
The reawakening of these airports is an issue of infrastructure, yet it is also a regional development and economic inclusiveness question. These assets have the potential to become growth generators to their states through strategic upgrades; UDAN enabled connectivity and specific policy execution.
