GMR Airports Infrastructure Limited, the company that operates the country’s busiest airport, Delhi Airport, is eyeing full-service airlines that operate large aircraft. GMR now plans to shift low-cost airlines (LCAs), which account for a large share of airport operations, to the Jewar-based Noida International Airport and the Ghaziabad-based Hindon Airport.

Currently, 8,554 flights operate per week from Delhi Airport. Of these, 38.5% are operated by LCC IndiGo Airlines.

Saurabh Chawla, Executive Director of GMR, said a few days ago that the focus of Jewar Airport will be primarily on LCAs. “We want LCC airlines to shift their operations from Delhi Airport to Jewar, Hindon, or other regional airports,” he said.

Why Noida is Better for Low-Cost Airlines

According to aviation consultancy firm CAPA India, Noida is a better option for low-cost airlines. The reason for this is that Delhi Airport charges a 25% Value Added Tax (VAT) on jet fuel, while Noida Airport charges only 4%. Jet fuel accounts for 40% of the cost of operating an aircraft. Due to the lower VAT, there is also a possibility of lower ticket prices. This will also help in reducing the growing traffic at Delhi Airport.

Here are some key points to consider:

  • GMR plans to shift LCAs from Delhi Airport to Jewar and Hindon Airports.
  • Jewar Airport will be primarily focused on LCAs.
  • Noida is a better option for LCAs due to lower VAT on jet fuel.
  • Shifting LCAs to Jewar and Hindon will help reduce traffic at Delhi Airport.

The move by GMR is likely to have a significant impact on the aviation industry in India. It remains to be seen how the low-cost airlines will react to this plan

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