Zurich Airport has prepared for a longer takeoff run at Noida airport because passenger flow in the region has not yet reached expected rates. Several circumstances contributed to this: the sudden failure of one of the three launching airlines, the operation of IGI Delhi airport being significantly below its current and expanded capacity, and connectivity issues between Noida airport (NIA) and Delhi have resulted in actual air traffic volume being much lower than initial forecasts for the new hub, which began operations on June 15th.
Zurich Airport International AG is the main developer and concessionaire of NIA. In its forecast for NIA, the company stated: 'Slower growth is expected due to the complex geopolitical situation, with indicators remaining under increased uncertainty in the near term. The route network will continue to expand, and international flights are expected. We maintain high confidence in the long-term growth potential and attractive fundamental indicators of the Indian aviation market.'
According to airport data, NIA handled 104 flights and served 25,000 passengers in June. In July, these figures rose to 1,044 flights and 77,000 passengers. Meanwhile, the airport's loss for the half-year (HY) is estimated at approximately 3 million US dollars.
IndiGo is the largest operator at NIA, while Akasa operates only a small number of flights. Air India Express, which was supposed to be the third launching carrier, withdrew from participation due to growing losses of the AI group. Establishing a new base requires significant costs, which the AI airline wished to avoid at the moment.
For NIA, the first second airport opened in a major Indian urban conglomerate, the situation did not initially promise an easy path. This is because neither the existing hub operated at full capacity (like Mumbai CSMIA), nor was any existing airport constrained (like Goa Dabolim), and old airports were not closed (unlike Bengaluru HAL, Hyderabad Begumpet, and Visakhapatnam, when Bhogapuram opens in a couple of months). Although the new airports in Hyderabad and Bangalore are almost as far as NIA for residents of Delhi, travelers simply had no other choice but to cover that distance. However, in Delhi, Gurgaon, Noida, and Ghaziabad, there is access to closer, better-connected, and more affordable multimodal transport.
When NIA was preparing for launch amid the post-COVID-19 aviation boom, it was expected that it would be difficult until 2030, when IGIA will reach its peak capacity of about 13-14 crore passengers annually (CPA). Currently, IGIA has a capacity of 11 CPA and handled less than 8 crore passengers last year.
Delhi Airport handles about 1,300 flights daily, which is significantly less than the 1,550 flights observed during the G20 peak. Thus, NIA is forced to compete for traffic by using the availability of peak hour slots as its unique selling proposition to attract airlines. However, it opened during a period when Indian carriers are facing triple pressure: the inability to find profitable Western destinations due to the closure of Pakistani airspace since April last year, rising oil prices due to the war between the US and Iran, and the weakening rupee. As a result, they are reducing the number of flights.