Noida airport to generate 1 lakh crore annual revenue from sixth year of ops

  • | Monday | 30th October, 2023

NOIDA: The Noida International Airport is likely to garner an annual revenue of over Rs 1 lakh crore from the sixth year of operations, officials said, citing a report by PricewaterhouseCoopers.Officials of the Noida International Airport Limited (NIAL) — the agency overseeing the project on behalf of the government — said there was also a possibility of a 5% yearly growth in the revenue.The earnings will be allocated among the government, and Noida, Greater Noida and Yamuna Expressway authorities based on their shareholding.While the government and the Noida Authority hold a 37.5% stake each, Greater Noida and Yamuna authorities have a 12.5% share in the project.According to the concession agreement, Zurich AG — which is developing the airport — must pay NIAL Rs 400.97 per passenger from the sixth year.These estimates are based on the techno-economic feasibility study by PwC. The airports bidding parameter was not a fixed revenue share, but the amount the company would pay per passenger. Of the four companies that participated in the bidding, Zurich AG offered the highest passenger amount — Rs 400.97. According to the concession agreement, this revenue will be realised from the sixth year of commercial operations, said Arun Vir Singh, NIAL CEO.He added, The projection is based on anticipated passenger traffic. So, the revenue may exceed expectations as domestic traffic is experiencing rapid growth. Additionally, factors such as micro and macroeconomics will contribute to this revenue.Officials said funds from the airport would be utilised by the three authorities for development projects. Projections suggest that in the first year, five million passengers are slated to use the airport, whose capacity will increase to 12 million by 2027. According to the PwC study, by 2029-30, the annual passenger handling is expected to increase to 16 million, reporting a growth rate of 19%. While domestic passengers are expected to grow at 18%, international traffic will see a 33% hike. By 2050, the airports traffic demand may reach around 98 million passengers annually. However, based on the current master plan, the airport is likely to cater to about 70-77 million passengers yearly.The PwC study further states that passengers choice between IGI and Noida international airport will depend on four key factors —travel time to and from the airport, the distance between the airport and the district, the impact of new connectivity projects on travel time and distance, and the availability of scheduled airport services.The Noida airport, meanwhile, will have 10 air bridges initially. These bridges will facilitate direct access to the terminal building from the aircraft. Singh said the introduction of airbridges would significantly streamline passenger travel. Traditionally, flyers are transported to the aircraft by a bus. But the air bridges will allow passengers to board the plane directly from the terminal building.

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