An aero city will be a part of the future Noida International Airport in Greater Noida, which will increase its revenue. The aero city, comparable to the airports in Delhi and Hyderabad, will be spread across 172 acres which will include lodging, dining, shopping, and entertainment options. According to Christoph Schnellmann, chief executive officer of Noida Airport, the aero city is anticipated to be operational by the end of 2024 following the completion of the first phase.
The idea of an aero city is becoming more popular among airport developers because, unlike Delhi or Hyderabad airports where the Airport Authority of India is a minority partner, the revenue generated by it goes to the operator and is not required to be shared with the joint venture partner.
The hotels and restaurants in aero cities, which are situated outside airport premises, are separate from those existing inside. There are three primary revenue streams for a private airport developer: aeronautical, non-aeronautical, and aero-city. Aeronautical profits are generated from levies for arriving and departing passengers, as well as landing and parking charges on aircraft. The airport’s inside shops, eateries, and liquor stores provide the non-aerial revenue stream. The AAI receives a portion of both revenue streams. Yet, the airport developer is the exclusive owner of aero city’s earnings.
Worldwide, non-aeronautical revenue accounts for about 70% of airport operator revenues, but in India, this percentage is closer to 50%. Currently, Delhi is the second-largest aero city after Hyderabad, which occupies 200 acres. The GMR Group manages the Goa Airport, the Hyderabad Airport, and the Delhi Airport, and is now building an aero city in Hyderabad. The Bangalore International Airport is also creating an aero city under Fairfax’s direction.
After completing the first phase of operations, the proposed Noida airport, the second airport in the Delhi-National Capital Region, will feature one runway and one terminal and be able to accommodate about 12 million people annually. In 2019, Zurich Airport International AG won the contract for the development and management of the airport. The Swiss business is carrying out the work through its subsidiary, Yamuna International Airport (YIAPL). Eight airports in South America and the Zurich Airport are currently under its management.
The development of an airport hotel with more than 220 rooms at Noida Airport’s Aero City was announced by Roseate Hotels & Resorts last year. According to Christoph Schnellmann, the concessions for commercial buildings like restaurants, stores, and hotels will be distributed over the following nine months.
An important advancement in increasing airport revenue is the establishment of an aero city at the Noida International Airport in Jewar. It is also a great illustration of how private airport developers can generate their own independent revenue. After the Noida airport’s first phase is finished, travellers will have improved access to services, amenities, and connectivity, which will enhance their overall air travel experience.
Follow and Connect with us: Twitter, Facebook, Linkedin, Instagram
