Emerging Technology Trends in AIRPORT DEVELOPMENT

As we know, India is presently the tenth-largest civilian aviation market with a market size of US$ 16 billion, as on July 2021. As per the International Air Transport Association (IATA), India's aviation market is anticipated to overtake that of China and the United States, to become the world's third largest aviation market by 2030.

These numbers are not hard to believe, considering that the country's aviation sector is on the road to recovery and has exhibited significant rebound off late, to pre-Covid levels, in terms of passenger movement and cargo operation. Morgan Stanley's research team also cited that the aviation industry is likely to recover to 80% of the pre-COVID levels.

The Government is also launching several industry-friendly initiatives to provide the much needed fillip to the sector post the COVID led economic turmoil. The Government recently unveiled regional connectivity scheme, titled UDAN (Ude Desh ka Aam Nagrik) to make flying accessible and affordable for the common man. In April 2020, the Government also introduced 'Lifeline Udan' flights to transport essential medical cargo to remote areas of the country to assist in India's war against COVID-19. It also has ambitious plans to open 100 additional airports by 2024. These initiatives are in line with the Government's objective to make India a US$ 5 trillion economy, by ramping up infrastructure in seaways, roads, airports and the digital payments space.

Under the UDAN initiative, more than 750 valid routes have been allotted to shortlisted airlines after four rounds of bidding. It includes one in Andaman Nicobar, three in Assam, and two each in Gujarat, Uttar Pradesh, Punjab and Rajasthan. RCS also plans to connect these underserved airports to key airports through flights that will cost Rs 2,500 per hour. Till date, 395 routes and 63 airports, including six heliports and two water aerodromes, have been operationalised under the aforementioned scheme.

The new developments are undoubtedly, positive. With the opening of the airport sector to private participation, six airports across major cities are being currently developed under the PPP model. The sector is expected to witness investments worth US$ 25 billion by 2027. The AAI also plans to push in Rs. 25,000 crore (US$ 3.58 billion) in the next five years to augment facilities and infrastructure at airports. The Government is proposing to infuse capital to the tune of US$ 1.83 billion for the development of airport infrastructure along with aviation navigation services by 2026.

Airports of the future

Airport development, per se, has been following the same blueprint since the time they were established. But now, the tides have turned with emerging technologies, new regulatory frameworks, new types of passenger, climate change and the pandemic. Given such a scenario, it is time to rethink future strategies.

Passenger centricity is the key decisive factor that dictates success or failure of an airport or airline. Therefore, intertwining and integrating passenger behaviour with advanced technology and design are now the best ingredients for aviation to build the groundwork for lasting change.

The pandemic is not over yet and therefore, measures the sector is taking now will become main stream once we all reach a more stable position post COVID. Technology here definitely has an integral role to play. As soon as the passenger arrives at the airport terminal, paper ID and boarding passes can be replaced by biometrics, especially facial recognition tech may be in practice to enroll the passenger at the entry points. We can already see that focus is increasing on web check-ins, self-check-ins, printing self-baggage tags and baggage drops to avoid passenger contacts with surfaces, objects and airline ground staff. Remote screening can also become a regular practice during security checks.

AI, Machine learning and IoT may be leveraged to collect and analyse data each day, which can then be used to generate meaningful insights for security, safety and enhanced passenger experience. Given the pandemic, passenger health profiles could also be generated, as AI can track travel history, current location and destination. AI assisted recommendation systems could also be put in place for passengers who are liable for additional levels of health check-ups.

Now, airports don't need to manage the footfall of passengers, they now need to plan the volume, understand the pattern and address issues to augment overall experiences. This can only happen when conventional ways of working are married to smart problem-solving capabilities. The idea is to 'build back better' after the pandemic induced slump. There is no doubt about the fact that, technology can unleash exciting opportunities for both airport operations and the passenger experience.

Going forward, technologies such as Robotics, Blockchain Technology, Augmented Reality and Virtual Reality, Biometrics and Wearable technology are all set to change the aviation space, once and for all. Such technologies are being implemented by few international airports.

Outlook

There are ample opportunities in the Indian aviation space that are waiting to be tapped. India is perfectly poised to become a leading maintenance, repair, and operations (MRO) hub. Adequate policy support and the growth in demand are already unravelling huge investment potential. To top it all, the success of the PPP model will fuel investments in existing and green field airports.

It is imperative to note that airports offer all round access to essential infrastructure and services that facilitate air transport. Additionally, airports can play a crucial role for economic development in local, national and regional levels. Therefore, effective and efficient development and operations of airports are important for the sustainable development of air transport in particular and the economy overall. Airport infrastructure is pivotal to the overall transportation network and contributes directly to a nation's international competitiveness and flow of investment from abroad.

Sandeep Gulati

Managing Director, Egis India

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