A non-Indian media report:
Financial Times
India’s airports: surprisingly good
Having stood in maddeningly wonky queues in both Delhi and Mumbai airports, surrounded by large families with as many crying children as oversized bags, it is difficult to believe.
Three of India’s international airports have been ranked amongst the world’s best terminals compared with others of a similar size. It’s an improbable result for a country usually berated for poor infrastructure.
Airports Council International partners with DKMA, the airport market research company, to present Airport Service Quality Awards every year. The 2012 winners were announced on Wednesday, and of all airports which see between 5m and 15m passengers pass through per year, Hyderabad’s international airport was ranked the second best for service quality, behind Nagoya in Japan. And in the 25m to 40m passengers per year category, New Delhi ranked second and Mumbai third, after Seoul Incheon.
For those sceptical about India’s success, it’s difficult to argue with the data. The satisfaction survey is conducted while passengers are still at the gate. Every quarter, at least 350 customers are interviewed at each terminal and they are asked to rate the facility on 34 different points, including parking, shopping, cleanliness and security.
In general, airports in emerging markets offer the best customer service.
“Out of the entire top performing airports under the Best Airport by Size category, over 80 per cent are from the Asia-Pacific region”, ACI Asia-Pacific regional director, Patti Chau commented. “This is a well-deserved recognition to airports in our region who are continuously striving for and committed in delivering excellent customer service.”
“A lot of the airports in Asia which are top airports are fairly new facilities or much newer than a lot of the European airports”, James Ingram, a spokesperson at DKMA, explained to beyondbrics. “Delhi’s new terminal is very well managed and a lot of the Asia airports put a lot of effort into managing quality, making sure the airport staff are aware of customer service.”
There is a strong link between economic development and airport infrastructure, which explains why the Indian government set aside Rs300bn to invest in airport infrastructure in its 2007-2012 Five Year Plan.
In a study last year, analysts at the National Council of Applied Economic Research (NCAER) estimated that Delhi airport’s operations contributed 0.5 per cent of the national GDP, Rs294.7bn, in the 2009-10 year. That includes the effects of additional tourism, investment, airport services, air transport and multiplier effects. By 2020, the airport’s contribution to GDP is expected to rise to Rs909.5bn.
And perhaps it is the form of investment into airports, as well as the size, that matters. The report says:
The public-private partnership (PPP) model, aimed at combining the financial resources and the competition-induced efficiencies of the private sector with the public sector’s mandate for the equitable sharing of benefits, has become a key strategy for infrastructure development in India.
It does seem to work – a PPP model has been used in the development or modernisation of all three of India’s award-winning airports.
“If you compare the PPP airports and the public airports in India there is a great difference in terms of service”, Purna Chandra Parida, a researcher at NCAER, told beyondbrics. “The private sector involvement improves efficiency and quality of service.”
The particular advantage of private sector involvement is added focus on the commercial side of the facility, which brings in more money.
Ingram adds: “The main goal of improving service quality is to get people into a frame of mind where they are not just viewing an airport as where you go to take a plane, but somewhere they’re willing to buy. They want to keep people in the shops and restaurants.”
India’s high ranking for airport service quality may be surprising. But there’s a lesson here for the government, as it invests in other large infrastructure projects.
India’s airports: surprisingly good | beyondbrics