In order to increase its revenue base, the upcoming Noida International Airport at Jewar in Greater Noida will include an aero city similar to those at the airports in Delhi and Hyderabad. Christoph Schnellmann, the chief executive officer of Noida Airport, told Fe that the 172-acre aero city will include hotels, restaurants, nightclubs, retail centres, and other similar recreational facilities.
Schnellmann stated, “We anticipate that the aviation city, with hotels and a few other facilities, will be operational by the end of the first phase in 2024.” In the next nine months, concessions for commercial spaces such as restaurants, boutiques, and hotels will be granted, he added.
Roseate Hotels and Resorts announced last year that it will construct a hotel with over 220 accommodations at the Noida airport’s aero city.
As opposed to Delhi or Hyderabad airports, where the Airport Authority of India is a minority partner, the concept of an aero city is gaining traction among airport developers due to the fact that the revenue generated by the operator is not required to be shared with the joint venture partner.
Aero cities are located outside of airports, and the hotels and restaurants are distinct from those located within airports. There are three primary revenue streams for a private airport developer: aeronautical, non-aeronautical, and aero city. Aeronautical revenues are derived from taxes on arriving and departing passengers, as well as landing and parking fees on aircraft. The non-aeronautical revenue is generated by businesses, restaurants, and liquor stores located on airport property. Both of these sources of revenue are divided with the AAI. However, the revenue from aero city pertains solely to the airport developer.
In India, approximately 50-55% of airport operators’ revenue comes from non-aeronautical sources, compared to the global average of 70-80%.
Currently, the largest aero city is Hyderabad, which spans 1,500 acres, followed by Delhi, which is constructed on 200 acres. The GMR Group, which also administers the Goa Airport and is planning an aero city there, operates both of these airports. Bangalore International Airport, headed by Fairfax, is also developing an aerocity..
After conclusion of phase I, the future Noida airport, which will be the second airport in the Delhi-National Capital Region, will have one runway and one terminal and will be able to accommodate approximately 12 million passengers per year.
Zurich Airport International AG was awarded the concession for airport development and operations in 2019. The initiative is being implemented by the Swiss company’s subsidiary Yamuna International Airport (YIAPL). It operates Zurich Airport and eight airports in Latin America at present.