Noida International Airport Set for Rapid Passenger Surge
The upcoming Noida International Airport (NIA) is poised for a significant expansion in passenger traffic, with projections indicating a near-tripling of footfall within its first five years of operation. According to tariff papers submitted to the Airports Economic Regulatory Authority (AERA), the airport expects to handle 67.4 lakh passengers in the financial year 2027, soaring to over 2 crore by FY31. This growth is largely fueled by domestic flights and a competitive advantage in aviation fuel pricing.
Key Drivers of Growth
A major factor attracting airlines to NIA is the substantial tax benefit on aviation turbine fuel (ATF). Uttar Pradesh imposes only a 1% value-added tax (VAT) on ATF, compared to Delhi's 25% at the Indira Gandhi International Airport (IGIA). This cost advantage is expected to draw carriers like IndiGo, Akasa, and Air India, which are confirmed as launch customers, along with the upcoming Subha Airways that will base its operations at NIA.
Additionally, NIA offers premium slot availability, unlike the congested IGIA, enabling airlines to initiate new services and increase frequencies to Tier-1 markets. The airport's catchment area, encompassing Delhi, Ghaziabad, Gautam Budh Nagar, and parts of Meerut, Sonipat, Jhajjar, and Rewari within a 120-minute travel radius, is anticipated to drive initial traffic due to pent-up demand.
Operational Timeline and Projections
Scheduled for inauguration later this month, NIA aims to commence operations this summer, with international flights expected to start between August and September. Starting with an annual capacity of 1.2 crore passengers, the airport forecasts 66 lakh domestic and 1.4 lakh international passengers in FY27, with international traffic accounting for 2% of the total. By FY31, domestic flyers are projected to reach 1.9 crore, contributing to the overall surge.
As a greenfield airport, traffic is expected to stabilize over two to three years, contrasting with mature airports where passenger numbers often stagnate. Improvements in infrastructure and services are likely to further attract passengers and airlines, supporting rapid expansion in the initial years.
Tariff and Financial Considerations
The tariff determination process is underway, with AERA proposing an aggregate revenue requirement (ARR) of Rs 6,855 crore, against the Rs 8,702 crore submitted by Yamuna International Airport Private Limited (YIAPL), the airport operator. AERA had previously issued an ad hoc tariff with user development fees ranging from Rs 210 to Rs 980, but with operational delays pushing the launch to 2024, regular tariffs are now being established.
Balancing cost recovery with competitive pricing is crucial for NIA's financial viability. AERA emphasizes that aeronautical charges and user development fees must be set to sustain operations while remaining attractive to airlines and passengers, based on the tariff card to be submitted by YIAPL.
If passenger numbers hit the projected milestones, the second phase of development could be triggered within two years of launch, marking a significant step in enhancing regional connectivity and economic growth.
