2 days ago
Noida Airport Faces Slow Growth, Losses and Tough Competition
Noida International Airport has started operating passenger flights, but fewer people are using it than expected.
It carried 25,000 passengers in June and 77,000 in July.
The airport had hoped to handle about 60 lakh passengers in its first year.
One planned airline, Air India Express, decided not to begin operations there.
IndiGo now operates most of the flights, with some flights from Akasa Air.
The airport also competes with the older Delhi airport, which is closer and easier for many travelers to reach.
Higher fuel prices, a weaker rupee, and problems with some flight routes are making expansion harder for airlines.
Airport developer Zurich Airport International AG still believes the airport can grow strongly over the long term.
Noida International Airport handled 104 flights and 25,000 passengers in June, rising to 1,044 flights and 77,000 passengers in July.
Zurich Airport International AG expects an H1 EBITDA core financial loss of about ₹28.6 crore as traffic ramps up slowly.
Air India Express withdrew before launch, leaving IndiGo as the dominant carrier and Akasa Air with a limited presence.
Noida airport must compete with Delhi’s established Indira Gandhi International Airport, which still has substantial unused capacity and stronger connectivity.
Geopolitical pressures, higher fuel costs, a weaker rupee, and limited regional transit links are restricting near-term growth.
- Who
- Zurich Airport International AG, Noida International Airport, IndiGo, Akasa Air, Air India Express, and Indira Gandhi International Airport are central to the report.
- What
- Noida International Airport is experiencing a slower-than-expected passenger and flight ramp-up and projects an H1 EBITDA core loss of approximately ₹28.6 crore.
- Where
- Noida International Airport in the National Capital Region, competing with Indira Gandhi International Airport in Delhi.
- When
- Commercial domestic flights began on June 15; the airport recorded traffic figures for June and July, though no year is specified.
- Why
- Growth is being limited by the withdrawal of Air India Express, competition from Delhi’s airport, geopolitical and economic pressures, and insufficient regional connectivity.
Short-term concerns
Long-term confidence
Traffic growth
Short-term concerns
Initial passenger numbers are far below the roughly 5 lakh monthly average implied by the first-year forecast of 60 lakh passengers.
Long-term confidence
Zurich Airport International AG expects the route network to continue expanding, with international services planned to follow.
Competitive position
Short-term concerns
Indira Gandhi International Airport remains closer to many travelers, has established transport links, and has unused capacity, making it difficult for Noida airport to attract passengers immediately.
Long-term confidence
Noida airport’s available peak-hour slots are presented as a unique selling proposition, and the developer remains confident in its long-term potential.
Airline participation
Short-term concerns
Air India Express’s withdrawal reduced carrier diversity and left IndiGo dominant, with only a minimal Akasa Air presence.
Long-term confidence
The airport can still expand its network as airline conditions improve and additional routes are introduced.
Key facts
- Projected loss
- Approximately ₹28.6 crore in H1 EBITDA core financial loss.
- June traffic
- 104 flights carrying 25,000 passengers.
- July traffic
- 1,044 flights carrying 77,000 passengers.
- Initial passenger forecast
- About 60 lakh passengers in the first year.
- Dominant carrier
- IndiGo, following Air India Express’s withdrawal before launch.
- Main competitor
- Indira Gandhi International Airport, which processed under 8 crore passengers last year according to the report.
- Long-term outlook
- Zurich Airport International AG expects route expansion and believes in the airport’s long-term growth potential.
Quotes
Zurich Airport International AG
Main developer and concessionaire behind Noida International Airport
“Slower ramp up expected due to challenging geopolitical environment with near-time performance remaining subject to elevated uncertainty. Route network will continue to expand with international services expected to follow. Strong confidence in the long-term growth potential and attractive fundamentals of the Indian aviation market.”
livemint.com
Sources
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