Noida airport expects quick passenger growth with prime-time slots, ATF price advantage

New Delhi: The upcoming Noida International Airport expects to see a rapid increase in footfall, the growth fuelled largely by domestic flights and an aviation fuel price advantage with which it expects to draw more airlines.Passenger numbers are expected to triple in the first five years — from 67.4 lakh in FY '27 to over 2 crore in FY '31, according to Noida International Airport's (NIA) tariff papers submitted with Airports Economic Regulatory Authority (AERA). If the airport touches this number, the second phase of development could get triggered within two years of the launch.Apart from availability of slots, unlike the absolute crunch at NCR's big brother IGI Airport, UP will charge 1% VAT (value added tax) on aviation turbine fuel (ATF) as opposed to 25% by Delhi for IGIA, a factor weighing heavily with airlines. IndiGo, Akasa and Air India will be the launch customers at NIA. The upcoming Subha Airways will also have its base at NIA. Expected to be inaugurated later this month, NIA is looking at starting operations this summer and AERA estimates international operations from Aug-Sept. If these timelines are not further delayed, the authority projects NIA — which begins operations with a capacity of 1.2 crore passengers annually — will see 66 lakh domestic and 1.4 lakh international passengers in FY 2027 (the latter accounting for 2% of the total 67.4 lakh footfall) Total passenger footfall is expected to rise almost threefold to over 2 crore in FY 31, with 1.9 crore domestic flyers."NIA's passenger traffic in the initial years will be driven by its catchment area… under 120-minute free flow travel time include the entire Delhi, Ghaziabad, Gautam Budh Nagar and parts of Meerut, Sonipat, Jhajjar, Rewari. Traffic is expected to expand rapidly in the initial years due to pent-up demand from these catchment areas and availability of premium slots. However, being a greenfield airport, traffic is expected to take two to three years to stabilise. Airlines are expected to start new services to untapped markets and increase frequency to Tier-1 markets for which they would be availing NIA facilities for operations," said a source with the airport operator.NIA's passenger growth projections are in contrast to existing airports, where passenger numbers tend to remain stagnant due to operational maturity. Improvements in airport infrastructure and services would help attract more passengers and airlines.AERA had last Aug issued an ad hoc tariff with user development fee ranging from Rs 210 to Rs 980 as it was then expected the airport will become operational IN 2025. That did not happen. Now, the process for regular tariff determination has kicked off. The operator is yet to submit its proposed tariff card based on which the regular aeronautical (that includes landing, parking) charges and user development fee (UDF) will be decided. AERA has proposed an aggregate revenue requirement (ARR) of Rs 6,855 crore as against an ARR of Rs 8,702 crore submitted by Yamuna International Airport Private Limited (YIAPL), the airport's operator."Determination of aeronautical charges and UDF requires a delicate balance between cost recovery and its potential impact on air traffic demand. This balance is crucial for the financial viability of the airport and its ability to sustain operations while also ensuring that the tariffs remain competitive enough to attract and retain airlines and passengers. Therefore, the authority, based on the tariff rate card to be submitted by YIAPL, would decide the balance between cost recovery and its potential impact on air traffic demand," according to AERA.