High costs, connectivity major issues at Noida airport: IndiGo, Air India

IndiGo and Air India flag high tariffs and poor connectivity at Noida airport, warning of higher fares and slower traffic growth despite operator's defence of pricing

India's two major carriers, IndiGo and Air India, have told the Airports Economic Regulatory Authority of India (AERA) that high costs and inadequate public transport connectivity could become major issues at the recently inaugurated Noida airport, Business Standard has learnt.

 

IndiGo mentioned that high costs — due to much higher proposed aeronautical tariffs than the Delhi airport — will raise airfares and make the Noida airport “commercially unattractive”.

 

Air India stated that corporate traffic will continue to avoid the Noida airport until it has adequate and convenient ground connectivity. The Tata Group-run airline also cited the example of Adani Group-run Navi Mumbai airport, where "higher aeronautical tariffs" compared to the Mumbai airport "hinder the rate of growth".

 

AERA is currently in the process of determining the aeronautical tariffs (aircraft landing charge, parking charge, user development fee, etc.) for the Noida airport for the 2026–2031 period.

 

Yamuna International Airport Private Limited (YIAPL), a subsidiary of Zurich Airport International AG that operates the Noida airport, submitted its proposed tariff card to AERA earlier this year. IndiGo and Air India, through their respective letters dated April 7, opposed this tariff card.

 

In its letter, IndiGo stated: "The Noida airport and the Delhi airport will both primarily cater to the national capital region (NCR) with substantial overlapping catchment. However, it is noted that the (proposed) aeronautical charges at the Noida airport are considerably higher compared to the Delhi airport."

 

India's largest carrier mentioned that the proposed domestic aircraft landing charges at the Noida airport were 119 per cent higher than at the Delhi airport. Similarly, the user development fee, paid by each embarking passenger, is 406 per cent higher at the Noida airport.

 

For a typical domestic round trip using an A321 aircraft, the airline estimated an additional cost of about ₹1.88 lakh per flight, which worked out to roughly ₹475 per passenger. If an airline ran around 15 such round trips daily from Noida, the extra cost could add up to about ₹103 crore annually compared to Delhi, IndiGo added.

 

"With such high costs (and consequently higher fares) leading to reduced demand, the Noida airport will become commercially unattractive for operations at any meaningful scale," it stated.

 

IndiGo said that while Delhi airport is well connected through metro, buses, and highways, similar public transport and road infrastructure are "currently lacking" at the Noida airport. As a result, passengers will incur higher out-of-pocket expenses for commuting to and from the airport, in addition to the higher airfares expected due to elevated operating costs.

 

When asked about the submissions by IndiGo and Air India, YIAPL told Business Standard that tariffs at the Noida airport are “in line with those at comparable greenfield and brownfield airports in the country”, adding that the pricing reflects the overall value being delivered.

 

“The tariff reflects the value we're delivering — not just in terms of infrastructure, but also in terms of efficiency, connectivity, and passenger experience,” it said.

 

Air India, in its letter, told the regulator that traffic at the upcoming Noida airport is likely to grow more slowly than the figures estimated by Landrum & Brown, a consultant hired by YIAPL.

 

The Tata Group-run airline pointed to global supply chain disruptions that are delaying aircraft deliveries by up to two years, which limits airlines’ ability to add new capacity. It also noted that the Delhi airport is itself expanding capacity, including the reopening of Terminal 1 and additional international handling at Terminal 3, which would absorb a large share of future traffic. The start of commercial operations at Hindon airport was also flagged as another competing factor.

 

The airline said peak-hour slots — the most in-demand departure and arrival timings — would take time to build up at Noida because most passengers are still located closer to the Delhi airport.

 

It also said higher yields, or better fares per passenger, depend on the maturity and profile of the catchment area, referring to the population and business base around the airport. "Thus, until adequate and convenient ground connectivity is established, such corporate traffic will still choose to travel out of the Delhi airport," it stated.

 

Air India further said costs remain a key concern, with airlines likely to deploy aircraft on routes where they can achieve better operational efficiency. “These issues can be seen at Navi Mumbai (NMIA), where the higher aeronautical tariffs hinder the rate of growth and delay the airport meeting its potential,” the airline added.

 

YIAPL told Business Standard that its tariff model spreads cost recovery over a longer period, which helps keep charges sustainable, while the airport’s design enables quicker passenger processing and supports lower operating costs for airlines.

 

It also said that airlines consider multiple factors beyond tariffs when deciding operations. “Airlines evaluate airport choices based on a range of factors… including operational efficiency, schedules, the airport's catchment, and its long-term growth potential,” YIAPL said, adding that it has been engaging with airline partners throughout the development phase.

 

The company said the Noida airport has been designed to perform strongly across these parameters, helping support efficient airline operations and a competitive offering for passengers. 

Pricing matters

• Domestic round trip could cost an additional ₹1.88 lakh per flight, says IndiGo
• This costs ₹475 extra per domestic passenger
• 15 such rountripsmay cost up to ₹103 crore more
• Corporate trafficmay avoid Noida till connectivity improves, airlines said