Since the opening of Noida International Airport (NIAL), the question is increasingly being raised whether it will have a major impact on the business of GMR Airports' Delhi Airport. However, the latest report from brokerage JM Financial largely dismisses this fear. According to the report, in the next 34 years only 1015% passengers from Delhi Airport can shift to Noida Airport.
Analysts believe that this change will be seen mainly in domestic flights only. This means that passengers with low fares and low profits can go towards Noida Airport, while the high earning international traffic will remain at Delhi Airport only.
The biggest strength of Indira Gandhi International Airport (IGI) is its connectivity. Most of the people of NCR give preference to it because it is well connected to metro, railways and highways. It has been said in the report that due to better connectivity, the base of Delhi Airport will remain strong and the possibility of large-scale traffic shift is less.
The majority of the airport's revenue comes from international passengers, such as duty-free shopping and other services. According to the report, the decline in international traffic is expected to be less than 4%, which will not have much impact on the total revenue.
The interesting thing is that Delhi Airport is also closer to many areas around Noida. In areas like Gautam Buddha Nagar and Ghaziabad, Delhi Airport still remains a better option in terms of travel time.
The impact of Noida Airport in the cargo segment is also likely to be limited. Cargo traffic may shift only up to 6% in the initial years, because the international connectivity of Delhi Airport is stronger.
Experts believe that in the coming time, Noida Airport may become less a competitor and more a partner of Delhi Airport. As traffic increases at Delhi Airport, Noida will help handle the additional pressure.
Overall, competition will definitely increase with the arrival of Noida Airport, but due to the strong hold of Delhi Airport, better connectivity and international traffic, the possibility of major loss seems less at present.
