Surface connectivity adequate, says Noida airport Vice Chairman Schnellmann

The surface connectivity between the Noida International Airport (NIA) and surrounding cities and towns was already adequate for the expected passenger traffic right now, and additional roads as well as rail services would be added as and when the traffic would increase, said its Vice Chairman Christoph Schnellmann on Friday. 

A few weeks back, IndiGo airline had informed the Airports Economic Regulatory Authority (AERA) that while the Delhi airport benefits from extensive connectivity through the Metro network, buses and highways, similar supporting surface transport infrastructure is not yet available for the NIA. This could result in passengers incurring higher commuting costs to reach the airport, in addition to potentially higher airfares stemming from high airport tariffs, it added. 

In an interview with Business Standard on Friday, Schnellmann said: "I think the airport is very, very well connected and directly adjacent to the Yamuna Expressway. And clearly the expressway will be the main conduit from the airport until rail connectivity is established. But we've been very deliberate about helping to ensure that there's a quick and easy way to reach the airport for every budget." 

The NIA will start handling flights from Monday onwards, becoming the second major commercial airport in the National Capital Region (NCR) to address the rising passenger demand. 

Schnellmann said the airport has worked to ensure passengers have multiple transport options, including state-run buses, app-based taxis, premium taxi services and coach services, connecting key locations in the NCR and Agra. 

"I think the connectivity is more than adequate for the number of passengers that we expect," he said. 

At the same time, he admitted that additional infrastructure would be required as the airport grows. NIA has presented a master plan for handling up to 70 million passengers annually, which would eventually require rail-based connectivity such as the Regional Rapid Transit System (RRTS) and other mass transit links. 

Asked about the timeline for the proposed RRTS connection, Schnellmann said substantial progress should be visible over the next three to four years, but added that the project was unlikely to be operational within that period. 

The airport operator -- which is a subsidiary of Zurich Airport International -- was maintaining the passenger traffic projections submitted to AERA earlier this year, although it acknowledged that recent West Asia conflict have made forecasting more difficult. 

Referring to passenger traffic expected during the airport's first financial year of operations, Chief Executive Officer of NIA Nitu Samra said, "We expect to be in the range of, let's say, five, five and a half million." 

Schnellmann said the ongoing West Asia conflict has increased uncertainty for the aviation sector. "Clearly looking forward or making these types of (traffic) predictions has become more challenging at the moment," he said. 

Despite the uncertainty, airport executives said they do not expect any impact on the airport's credit profile or long-term expansion plans. 

Samra said lenders and rating agencies continue to remain positive because of the airport's long-term growth potential and the strength of its catchment area, which spans western Uttar Pradesh, Noida, Greater Noida, Delhi and adjoining NCR cities. 

Expansion work will continue even after flight operations begin. Schnellmann said the airport is already pursuing a project to add nine additional aircraft parking stands. Construction activity is also continuing in the international section of the passenger terminal ahead of the planned launch of international operations later this year. 

He said the airport has been engaging with the Ministry of Civil Aviation on bilateral traffic rights issue. However, Schnellmann clarified that the airport has not sought separate "point-of-call status" from Delhi. 

Bilateral air-service agreements determine how many airlines from two countries can operate and the cities they can serve in each other's markets. Since these agreements typically designate Delhi city as a point-of-call rather than a specific airport, the government will need to decide how foreign carriers can utilise their Delhi traffic rights between the Delhi airport and the NIA, and whether a separate allocation mechanism is needed for the two airports. 

"We've been engaging with the Ministry of Civil Aviation for quite some time on this matter. I think they've been very supportive of this, they understand this, and as the various bilateral agreements are reopened and reviewed, this has been very much a consideration that they've been working through with us," Schnellmann said. 

A few weeks back, NIA had told AERA that cargo traffic is expected to ramp up "gradually" over the first three to four years as exporters, importers and logistics firms continue to depend on Delhi Airport's established airline network, connectivity and cargo ecosystem. The Delhi airport also has spare cargo handling capacity. The freight forwarders, trucking operators and e-commerce players remain concentrated around Delhi and Gurugram, the NIA had said. 

When asked about cargo volume projections for initial years, Schnellmann said: "We're always a little bit reluctant to communicate any forecast or volume forecast, but what I can confirm is that the full portfolio of cargo services are available, so that capacity is there, whether it's domestic, whether it's an international cargo, whether it's valuables, dangerous goods or perishables." 

Samra said NIA has currently developed facilities capable of handling 200,000 metric tonnes of cargo annually and will offer services covering domestic and international cargo, perishables, valuables, dangerous goods and dedicated freighter operations. 

On competition with Delhi's Indira Gandhi International Airport, Schnellmann said the Noida airport should be viewed as complementary infrastructure rather than a rival facility. 

"We see ourselves as Noida airport complementing that offering, providing options for carriers, providing options for passengers, and really supporting that growth," he said. 

The airport operator also confirmed that it has started receiving interest from the general aviation segment (charter flight operators), although passenger and cargo operations remain the immediate priority. 

Looking beyond the launch and the immediate hiccups due to the West Asia conflict, both executives expressed confidence about the long-term outlook for Indian aviation and the airport's role in the region. 

"I think if we take a step back and look at it with the wide-angle lens at Indian aviation, we're as confident as ever," Schnellmann said.