High Airport Charges Offset Fuel Tax Benefits, Making Noida Flights Costlier Than Delhi
Despite expectations that the new Noida International Airport in Jewar would offer cheaper flights due to Uttar Pradesh’s low 1% VAT on aviation fuel, airfares remain comparable to or higher than those from Delhi’s Indira Gandhi International Airport. The primary driver is the significantly higher user development fees and landing charges at Noida, designed to recoup construction costs. For instance, domestic departure fees are ₹653 at Noida versus ₹129 in Delhi. IndiGo, the first airline to operate from the new hub, has protested to the Airports Economic Regulatory Authority, arguing that these excessive charges offset fuel tax savings and could deter passengers. Estimates suggest operating an Airbus A321 round-trip from Noida costs ₹1.88 lakh more than from Delhi. Local politicians, including BJP MLA Dheerendra Singh, have expressed dissatisfaction with arbitrary pricing by private airlines, urging government intervention. Consequently, travelers may benefit from reduced traffic and modern infrastructure but not the anticipated cost savings, challenging the airport's viability as a competitive alternative for the National Capital Region.
Wire timeline
High Airport Charges Offset Fuel Tax Benefits, Making Noida Flights Costlier Than Delhi
Despite expectations that the new Noida International Airport in Jewar would offer cheaper flights due to Uttar Pradesh’s low 1% VAT on aviation fuel, airfares remain comparable to or higher than those from Delhi’s Indira Gandhi International Airport. The primary driver is the significantly higher user development fees and landing charges at Noida, designed to recoup construction costs. For instance, domestic departure fees are ₹653 at Noida versus ₹129 in Delhi. IndiGo, the first airline to operate from the new hub, has protested to the Airports Economic Regulatory Authority, arguing that these excessive charges offset fuel tax savings and could deter passengers. Estimates suggest operating an Airbus A321 round-trip from Noida costs ₹1.88 lakh more than from Delhi. Local politicians, including BJP MLA Dheerendra Singh, have expressed dissatisfaction with arbitrary pricing by private airlines, urging government intervention. Consequently, travelers may benefit from reduced traffic and modern infrastructure but not the anticipated cost savings, challenging the airport's viability as a competitive alternative for the National Capital Region.
India Today | Latest Stories