Air passengers hoping for cheaper flights from the newly inaugurated Noida International Airport may end up paying fares similar to — or potentially higher than — those from Indira Gandhi International Airport, as higher airport tariffs and passenger charges at the new airport offset Uttar Pradesh’s low tax on aviation fuel.
With commercial operations at Noida International Airport (NIA) set to begin next month, airlines and local representatives have raised concerns over the airport’s pricing structure, according to a report by The Times of India.
Also read: Noida International Airport to begin passenger flights from June 15; IndiGo to operate first service
Despite Uttar Pradesh levying just 1% VAT on aviation turbine fuel (ATF), compared to Delhi’s 25%, interim passenger user charges and aeronautical fees at NIA are significantly higher than those at Delhi airport, effectively wiping out the expected fare advantage for travellers.
The issue has already begun reflecting in ticket prices. IndiGo, the first airline to announce services from NIA, is charging nearly identical one-way nonstop fares on June 24 from both airports. Flights to Bengaluru are priced at Rs 8,910 from both Delhi and Noida, while Hyderabad fares stand at Rs 6,129, Jammu at Rs 6,999, and Amritsar at Rs 3,499, according to the ToI report.
IndiGo has formally objected to the tariff structure before the Airports Economic Regulatory Authority (AERA), warning that the higher charges “will make overall fares paid by passengers travelling to and from NIA higher than IGIA”.
“This will consequentially discourage passengers from shifting to using NIA. As a result, the project’s vision of effectively catering to the NCR catchment is significantly diluted due to the proposed rates,” the airline told AERA, according to ToI.
Charges outweigh tax relief
The airline said aeronautical charges at NIA — whose IATA code is DXN — are “considerably higher” than at Delhi airport (DEL). It claimed landing charges for large aircraft such as Airbus A320s and Boeing 737s are 119% higher for domestic flights and 53% higher for international flights at NIA.
IndiGo also said user development fees (UDF) for domestic passengers are more than four times higher at NIA. According to the airline, UDF for departing and arriving domestic passengers is 406% and 404% higher, respectively, while charges for international travellers are 85%-89% higher.
“Considering one round-trip operation (domestic) on an Airbus A321 aircraft, assuming a maximum takeoff weight of 97 metric tonnes, 232 seats and 85% load factor, this translates to Rs 1,88,000 additional cost as compared to IGIA,” IndiGo told AERA.
“If an airline were to operate a modest scale of about 15 daily round-trip flights at NIA, the impact would be multiplicative and amount to about Rs 103 crore in additional costs as compared to IGIA annually,” it added.
The airline further warned that “with such high costs leading to reduced demand, NIA will become commercially unattractive for operations at any meaningful scale”.
Also read: Noida Airport gets crucial nod to move towards flight operations
Airport operator defends tariffs
Noida airport operator defended the pricing structure, saying the tariffs are “in line with those at comparable greenfield and brownfield airports in the country”.
“By designing the airport for quick, easy processing, we help airlines keep operating costs low, which ultimately benefits passengers,” the operator said, according to the ToI report.
The company added that the tariff model is intended to recover investments over a longer period. NIA’s first phase has been built at a cost of Rs 6,500 crore.
“Tariffs at NIA reflect the value we’re delivering — not just in terms of infrastructure, but also in terms of efficiency, connectivity and passenger experience. Our tariff model is designed to spread recovery over a longer horizon, which keeps costs sustainable,” the operator said.
AERA has already issued an interim aeronautical tariff order for NIA to enable launch operations and is currently undertaking the process for regular tariff determination.
Meanwhile, the issue has also drawn political attention. The BJP MLA from Jewar has reportedly questioned the higher ticket prices and sought intervention from Prime Minister Narendra Modi and Uttar Pradesh Chief Minister Yogi Adityanath.
The fare debate comes amid long-standing concerns raised by Delhi International Airport Ltd, which has been pressing the Delhi government for a “level playing field” in ATF taxation to prevent airlines from shifting operations to Noida.
However, current fare trends indicate passengers may have little financial incentive to choose NIA over Delhi, apart from location convenience — a factor aviation planners say has already shaped demand patterns at the Hindon civil terminal in Ghaziabad.
