Noida International Airport (NIA) has experienced a slower operational start than anticipated, leading its developer, Zurich Airport International AG, to project a more gradual ramp-up. This is attributed to weak airline capacity, connectivity challenges, and competition from Delhi's Indira Gandhi International Airport (IGIA).
Zurich Airport International AG expressed confidence in NIA's long-term growth potential despite near-term uncertainties stemming from the geopolitical environment. The outlook suggests that the route network will continue to expand, with international services expected to be introduced later. The company remains optimistic about the Indian aviation market's fundamentals.
NIA commenced domestic passenger operations on June 15. In June, it handled 104 flights and 25,000 passengers, with traffic increasing to 1,044 flights and 77,000 passengers in July.
The airport's estimated loss before interest, taxes, depreciation, and amortization (EBITDA) for the first half of the year is approximately $3 million.
IndiGo is the primary airline operating at NIA, with Akasa Air also running a smaller number of flights. Air India Express, initially expected to be the third launch airline, withdrew its plans due to mounting losses within the Air India group and the significant costs associated with establishing a new base at NIA.
Prior to Air India Express's withdrawal, NIA had projected handling around 60 lakh passengers in its first year, averaging about 5 lakh passengers per month. The July passenger count of 77,000 fell considerably short of this target.
The airport's subdued beginning occurs against a challenging operational backdrop. Unlike many other Indian cities, the National Capital Region already hosts a major international airport, IGIA, which is currently operating below its full capacity. IGIA has an annual capacity of approximately 110 million passengers but handled fewer than 80 million last year, with around 1,300 flights daily.
This situation places NIA in direct competition with an established airport that boasts superior connectivity to Delhi, Gurgaon, Noida, and Ghaziabad, along with a variety of affordable multimodal transport options.
NIA is unique as it is the only second international airport in a major Indian urban cluster where the existing airport is not operating at full capacity, facing significant constraints, or being replaced. This contrasts with the circumstances surrounding the opening or planning of newer airports in Mumbai, Goa, Bengaluru, and Hyderabad.
NIA was expected to face a difficult period until IGIA approached saturation, a point previously projected around 2030 when the Delhi airport was anticipated to reach its peak capacity of 130-140 million passengers annually.
Connectivity to the broader NCR remains another hurdle for NIA. While peak-hour slots are expected to be an advantage, access from major population and business centers across the region will be crucial for attracting airlines and passengers.
The timing of NIA's launch has also coincided with pressures on Indian airlines, including the closure of Pakistani airspace affecting western routes, rising oil prices due to the US-Iran conflict, and a weaker rupee. These factors have led airlines to reduce flights and reassess expansion plans, further complicating the task for a new airport aiming to build traffic from scratch.
Despite the slower initial ramp-up, Zurich Airport International AG maintains a strong outlook for NIA's long-term prospects, anticipating growth as its route network expands and international operations commence.
