IndiGo and Air India Raise Concerns Over High Costs at Noida Airport
High costs, connectivity major issues at Noida airport: IndiGo, Air India
Business Standard
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IndiGo and Air India have expressed concerns to the Airports Economic Regulatory Authority of India (AERA) about high aeronautical tariffs and inadequate connectivity at Noida Airport, warning that these issues could lead to higher fares and slower traffic growth. The proposed domestic landing charges are 119% higher than at Delhi Airport, raising operational costs significantly.
- 01IndiGo warns that high costs at Noida Airport will lead to increased airfares.
- 02Proposed domestic landing charges at Noida are 119% higher than at Delhi Airport.
- 03Air India highlights the need for better ground connectivity to attract corporate traffic.
- 04Traffic growth at Noida may be slower than expected due to competition from Delhi Airport.
- 05Yamuna International Airport Private Limited defends its tariff model as sustainable and competitive.
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IndiGo and Air India have raised significant concerns regarding the high operational costs and poor connectivity at Noida Airport, recently inaugurated in Uttar Pradesh, India. IndiGo reported that the proposed domestic aircraft landing charges at Noida are 119% higher than those at Delhi Airport, while the user development fee is 406% higher. This could lead to increased airfares, making the airport less attractive for airlines. IndiGo estimates that operating costs could rise by approximately ₹1.88 lakh (about $2,260 USD) per flight, potentially leading to an annual increase of around ₹103 crore (roughly $12.4 million USD) if 15 daily round trips are conducted. Air India echoed these concerns, emphasizing that without adequate public transport and ground connectivity, corporate traffic will likely continue to favor the more accessible Delhi Airport. The Airports Economic Regulatory Authority of India (AERA) is currently reviewing the proposed tariffs for the airport's operational period from 2026 to 2031. Yamuna International Airport Private Limited (YIAPL), which operates Noida Airport, defended its pricing strategy, claiming it aligns with other airports in India and reflects the value provided in terms of infrastructure and passenger experience.
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Higher operational costs at Noida Airport could lead to increased airfares for passengers, making travel less affordable. This may deter travelers and affect the airport's growth potential.
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