IGIA and Noida airport: Short-term competition but long-term necessity, Pg8

Key Highlights:

• Delhi-NCR requires a second international airport due to increasing passenger traffic.
• IGIA handles 10.5 crore passengers annually, expected to reach 12.5 crore by the end of the decade.
• Noida International Airport (Jewar) is projected to cater to the excess traffic as IGIA reaches saturation around 2030.
• Uttar Pradesh levies 1% VAT on aviation turbine fuel compared to Delhi's 25%, incentivizing airlines to shift to Jewar.

Detailed Insights:

• A 2018 PwC study projects air travel demand from NCR's catchment area to reach 25 crore passengers annually by 2050.
• IGIA's expansion is limited by space constraints in a densely populated urban area.
• Jewar airport is expected to cater to peak-hour demand that IGIA cannot fulfill, with potential spillover picking up by 2029-30.
• Mumbai's Chhatrapati Shivaji Maharaj International Airport experienced a slowdown after 2017 due to capacity constraints.
• Noida airport represents good urban and economic planning for a region expected to become the largest urban settlement by the end of this decade.
• International tourists visiting the Taj Mahal in Agra might prefer Jewar airport due to its proximity.
• Gautam Budhha Nagar and Ghaziabad contribute nearly half of IGIA's cargo shipments, giving the new airport a natural advantage as a cargo hub.
• In the short term, IGIA and Noida airport will compete for airlines, routes, and passengers, but in the long term, they would complement each other.

Key Concepts Involved:

• Saturation Point: The point at which an airport's capacity is fully utilized, leading to constraints and potential slowdowns.
• Aviation Turbine Fuel (ATF): A type of jet fuel used in aircraft, the cost of which significantly impacts airline operations.
• Catchment Area: The geographical area from which an airport draws its passengers and cargo.