AAI Approves Mega Incentive: Airports Authority of India
In a significant move to enhance international air connectivity, the Airports Authority of India (AAI) has rolled out a mega incentive scheme across 13 airports in the country. One of the biggest beneficiaries of this scheme is the Veer Savarkar International Airport located at Port Blair in the Andaman and Nicobar Islands.
The initiative, aimed at reviving and sustaining international flight operations, will provide financial and operational incentives to airlines for a period of three years. According to AAI officials, this support is crucial to bridge the viability gap during the initial phase of international operations — often the most critical period for airlines looking to establish new routes.
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Focus on Port Blair
Designated as an international airport on April 1, 2007, Veer Savarkar International Airport has previously witnessed international connectivity. On November 16, 2024, AirAsia launched the first scheduled international service from Kuala Lumpur to Port Blair. However, due to low passenger traffic and poor load factors, the route was discontinued less than five months later on April 10, 2025.
This time, however, the AAI and the Union Territory administration are optimistic that the newly launched incentive scheme will help overcome the initial challenges that airlines face when starting new international routes.
“The incentive scheme for international flight operations by AAI management is a welcome move as it is going to promote tourism significantly in the archipelago,” said the international flight operations by AAI management. “We are happy to share that our airport has received the highest incentive among the 13 selected airports.”
Tourism and Trade Potential
The Andaman and Nicobar Islands are widely regarded as one of India’s most beautiful and ecologically rich tourist destinations. However, the remote geographical location of the islands has often limited access, especially for international tourists. Direct connectivity from countries such as Malaysia, Thailand, and Indonesia has long been a demand from the tourism sector.
With the support of the new scheme, officials are hopeful that more airlines will consider launching direct international services, tapping into the tourism potential of the region. The UT administration has also expressed strong interest in facilitating cargo operations, which can add another dimension to international air connectivity from Port Blair.
Better Prepared for the Future
Reflecting on the lessons learned from the short-lived AirAsia service emphasized that the ecosystem is now better prepared to support sustainable international flight operations. “We have learned a lot from the earlier experience. This time, we are ready — not just in terms of passenger flights but also for international cargo services,” the Airport Director added.
The airport has made infrastructural upgrades in recent months, including the expansion of the runway and terminal facilities to accommodate larger aircraft and increased international passenger traffic. Coordination between AAI, the Ministry of Civil Aviation, and the Andaman and Nicobar Administration is also stronger, with joint efforts being made to ensure the success of future international operations.
Strategic Significance
Port Blair holds strategic importance for India, both geographically and militarily. Improving international air connectivity from the islands will not only benefit the local economy but also strengthen India’s presence in the Indo-Pacific region. Enhanced air links are expected to lead to better diplomatic, cultural, and economic exchanges with Southeast Asian nations.
Industry experts have praised the incentive-driven approach adopted by AAI, stating that such measures are essential to encourage airlines to experiment with new international routes in less-served regions.
Looking Ahead
While the challenges of sustaining international routes in remote locations are many, the new incentive scheme offers a ray of hope. With better planning, infrastructure, and coordinated efforts, Port Blair could soon emerge as a new international gateway in the Bay of Bengal.
As the scheme rolls out and negotiations with airlines begin, stakeholders remain cautiously optimistic. If successful, this could mark a new chapter for international tourism and trade in the Andaman and Nicobar Islands — turning the archipelago into a well-connected, globally accessible destination.In a significant move to enhance international air connectivity, the Airports Authority of India (AAI) has rolled out a mega incentive scheme across 13 airports in the country. One of the biggest beneficiaries of this scheme is the Veer Savarkar International Airport located at Port Blair in the Andaman and Nicobar Islands.
The initiative, aimed at reviving and sustaining international flight operations, will provide financial and operational incentives to airlines for a period of three years. According to AAI officials, this support is crucial to bridge the viability gap during the initial financial and operational incentives— often the most critical period for airlines looking to establish new routes.
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