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

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Prime Minister Narendra Modi on Saturday, March 28, 2026, officially inaugurated Phase 1 of the Noida International Airport (NIA) in Jewar, marking a historic shift in Delhi-NCR’s aviation landscape as the region transitions into a dual-airport system. (Express File)Why does Delhi-NCR need a second international airport when Indira Gandhi International Airport (IGIA) is already the country’s largest?The answer lies in the ever-increasing passenger load.The IGIA currently handles about 10.5 crore passengers annually, with its capacity expected to rise to 12.5 crore by the end of this decade. As per Delhi Master Plan 2026, which is under consideration, its capacity might touch 14 crore annually between 2035-2040.However, the demand is projected to far outpace this growth.As per a 2018 feasibility study conducted by global consultancy firm PwC for the Noida International Airport, by 2050, air travel demand from NCR’s catchment area is expected to reach 25 crore passengers annually.However, IGIA — the country’s busiest airport — is likely to hit saturation around 2030. Located in a densely populated urban area, space constraints would limit its further expansion.This is where Jewar airport comes in.Capacity constraint at IGIA, along with the horizontal expansion of Delhi, has necessitated the requirement of a new airport, noted the PwC report. Even now, when IGIA has not reached saturation, the airport is expected to witness capacity constraints at peak hours. This may result in spill-over of traffic to Jewar, it added.Thus, in the initial years, Jewar airport is likely to cater to peak-hour demand that would remain unfulfilled by IGIA — the excess traffic is expected to spill over to the new airport. The potential spillover may start picking up significant pace by 2029-30, as IGIA reaches its saturation point.Story continues below this adSources in the aviation industry said that the Noida airport represents good urban and economic planning for a region expected to become the largest urban settlement in the world by the end of this decade. Mumbai, the other major Metro that has two airports, was late in realising that a single airport would be insufficient to sustain its scale of growth.According to ratings agency Crisil, Mumbai’s Chhatrapati Shivaji Maharaj International Airport saw a slowdown after 2017 because of capacity constraints — it could not offer additional slots for airlines during peak hours. The same scenario would have played out in Delhi given there wasn’t another airport nearby, the agency had said in a note last month.However, in the short-term, the IGIA and Noida airport will compete for airlines, routes and passengers.One key factor tilting the balance is cost: Uttar Pradesh levies 1% VAT on aviation turbine fuel compared to Delhi’s 25%. Since fuel accounts for 30-40% of airline costs, this differential could incentivise carriers to shift operations toward Jewar airport.Story continues below this adAlso, international tourists visiting the Taj Mahal in Agra might prefer Jewar more. Around 18% of 6,000 passengers surveyed at IGIA for the PwC study said they intend to visit the Taj Mahal, and 60% said they would prefer an airport closer to Agra. Conscious of Taj Mahal’s importance as a traffic driver, last year, IGIA had announced a direct luxury bus service to and fro the Taj Mahal, to be run daily.Further, with Gautam Budhha Nagar and Ghaziabad contributing nearly half of IGIA’s cargo shipments —according to the PwC study — the new airport has a natural advantage in positioning itself as a cargo hub.The IGIA, meanwhile, will hope that its densely urban and economically better off catchment area as well connectivity through Metro and road network will continue to act as advantages.In the long-term, however, the two airports would complement each other. Without Noida airport, IGIA would face a hard time catering to passenger load.Devansh Mittal is a Correspondent at The Indian Express, based in the New Delhi City bureau. He reports on urban policy, civic governance, and infrastructure in the National Capital Region, with a growing focus on housing, land policy, transport, and the disruption economy and its social implications. Professional Background Education: He studied Political Science at Ashoka University. Core Beats: His reporting focuses on policy and governance in the National Capital Region, one of the largest urban agglomerations in the world. He covers housing and land policy, municipal governance, urban transport, and the interface between infrastructure, regulation, and everyday life in the city. Recent Notable Work His recent reporting includes in-depth examinations of urban policy and its on-ground consequences: An investigation into subvention-linked home loans that documented how homebuyers were drawn into under-construction projects through a “builder–bank” nexus, often leaving them financially exposed when delivery stalled. A detailed report on why Delhi’s land-pooling policy has remained stalled since 2007, tracing how fragmented land ownership, policy design flaws, and mistrust among stakeholders have kept one of the capital’s flagship urban reforms in limbo. A reported piece examining the collapse of an electric mobility startup and what it meant for women drivers dependent on the platform for livelihoods. Reporting Approach Devansh’s work combines on-ground reporting with analysis of government data, court records, and academic research. He regularly reports from neighbourhoods, government offices, and courtrooms to explain how decisions on housing, transport, and the disruption economy shape everyday life in the city. Contact X (Twitter): @devanshmittal_ Email: devansh.mittal@expressindia.com ... Read MoreStay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:Noida