Can Indian airports join global hub league? Experts weigh in at BS Summit

Experts at the Business Standard Infra Summit said Indian airports are moving closer to global hub status, with Delhi nearing the threshold and Noida focusing on new technology

Indian airports are steadily moving towards being recognised as global hubs, with Delhi Airport nearly reaching that stage, experts said at the Business Standard Infrastructure Summit on Thursday on the theme “Building a Global Airport Hub in India.”

 

In a panel discussion moderated by Deepak Patel, Videh Kumar Jaipuriar, CEO of Delhi International Airport, explained that the classification of a hub is not formally defined but is largely determined by the share of transfer traffic.

 

“There is no criteria for any airport to be called a global hub. It is more about how well you are connected to across the world and what is the percentage of traffic that is transfer traffic,” he said. “So, typically for a global hub, around 30 per cent of the traffic is connecting traffic with a mix of domestic to international as well as international to international traffic. We are currently at about 28 to 29 per cent. I can say we are on the verge of getting classified as a global hub and a global gateway.”

 

He noted that five years ago, Delhi Airport had around 20 per cent connecting traffic, primarily domestic-to-domestic, but this has now expanded to domestic-to-international and international-to-international transfers. “At Delhi airport, the current share of international to international traffic is 3 to 4 per cent. India is in a very unique situation. India is akin to many US airports. Domestic to international traffic has gone up by 30 per cent,” he added.     

 

Infrastructure challenges and planning for growth

 

Jaipuriar highlighted how airport planning is tied to long-term traffic projections, which can change significantly over time. “When you design an airport, it’s based on a 10-year projection of the traffic... If I look at the traffic projection that we got in 2016, the overall scenario was very different. At that time, Air India was a government organisation, and they lacked funding. Indigo didn’t have too many aspirations for international travel. Those aspirations have changed,” he said.

 

He added that while modifying existing infrastructure is difficult, Delhi benefited from forward planning. “Terminal 3 was designed in a manner that more international operations can be held in Terminal 3 by just doing a little bit of tweaking. Similarly, we saw that our international to international transfer is going multifold... We were able to actually expand that area threefold because that was something that was part of the initial planning.”

 

Delhi’s advantages as a brownfield airport

 

Explaining the benefits of an existing, centrally located airport, Jaipuriar said: “The benefit of a brownfield airport like Delhi is that we are in the centre of the city. So the catchment area is that much larger in terms of the overall traffic, as well as the relationship with different airlines is that long-standing.”

 

He stressed that hub airports still need 60-70 per cent origin-and-destination traffic, which Delhi has.

 

On passenger movement between terminals, Jaipuriar pointed to improvements: “In spite of the passenger travelling on the city side that you have to come out of Terminal one and go to Terminal three, your baggage need not come out, your baggage can get transferred to Terminal 3, so that makes life easier.” He said increased bus frequency, the planned metro extension to Terminal 1, and a future automatic people mover would further ease transfers.

 

On immigration, he said, “Ours is best in the world in terms of waiting time. We have been increasing immigration counters on regular intervals. We work closely with immigration officials for ease the flow.”     

 

Noida Airport bets on technology and design

 

Christoph Schnellmann, CEO of Noida International Airport, underlined the advantages of greenfield airports. “Every airport is a hub, not just in terms of air travel but also ground travel. Larger airports in India are beginning to provide hub connectivity at global scale,” he said.

 

Unlike older airports, Noida is not constrained by legacy systems. “We have been able to deploy the newest technology when it comes to passenger processing, self-service bag drops. The disadvantage is that we do not have the experience,” Schnellmann said.

 

Currently building its first terminal, Noida plans to scale capacity to 70 million passengers over the next two decades. “Our efforts in this context [are] that we will make sure that the transfer from your vehicle... to the flight is as quick and easy as possible to make sure that those processes are quick or seamless or digitally supported,” he said.

Delhi Airport to keep international travel limited to Terminal 3

 

Jaipuriar ruled out the possibility of airline-dedicated terminals in the national capital. On being asked if an airline dedicated terminal is possible at the Delhi airport, he said, "In the current structure, no. All the international travel, we will limit to Terminal 3."

 

He pointed out India’s growing advantage in direct connectivity to global destinations. “In terms of competition, India has got an inherent strength. So in 2019, possibly only 17–18 per cent of people travelling to Europe, North America were taking direct flights from India. As compared to that now, percentages have improved quite drastically,” he said.

 

Jaipuriar added that Delhi Airport’s aim is to become “an airport of choice for an Indian traveller” and said the operator is working closely with the government for policy support.     

 

Noida Airport to focus on seamless domestic, international transfers

 

Schnellmann said the upcoming greenfield facility will initially focus on domestic-to-domestic and domestic-to-international transfers. “At Noida airport, the primary traffic in the initial phase of operations will be domestic to domestic, or domestic to international. We will be an international airport. They will be immigration counters there. On ATC and runway, we are looking for safety,” he said.

 

He stressed that the bigger challenge for airports in the National Capital Region (NCR) lies in balancing growth with efficiency. “The challenge for us is how can we increase the capacity of the airport in and around Delhi-NCR, and how can we do so without the resilience and punctuality of the system.”

 

Schnellmann also underlined the importance of joint efforts in building world-class hubs. “If we want to succeed in India with hubs, if we want to win with hubs in India, we do so as an industry, we do so by working together.”

 

He added that enhancing the passenger transfer experience will be crucial. “Our transfer product needs to be better, and better will not be the same thing for each and every passenger. Better may mean quicker, maybe easier, cheaper, or more luxurious for the premium travelling segment. If we want to succeed as a hub, we do so by finding a way to work together.”