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Transcript

Upcoming Airport at Jewar

Credits:

Lakshay Ahuja

Harshita Jaiswal

Jolyon

Divyendu Tiwari

Sanskriti Pathak

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THINGS TO BE DISCUSSED

THINGS TO BE DISCUSSED

  • AIRPORT
  • INFRASTRUCTURE
  • LOCATION
  • CAPACITY
  • PASSENGER
  • AIRLINES
  • MAN POWER
  • SCHEME

About Jewar

  • Jewar is located in the suburbs of Greater Noida about 60 km from Noida,40 km from Greater Noida.
  • Well connected to Yamuna Expressway.
  • Jewar now a Nagar Panchayat under the Gautam Budh Nagar district, was earlier part of the Bulandshahr district in Uttar Pradesh.
  • With a population of 32,269, Jewar has yet to see full-scale development, despite being part of the NCR.

Upcoming Airport At Jewar

  • An international airport with a capacity to handle 30-50 million passengers per year will come up at Jewar in Greater Noida in the next 5-6 years to ease the load on Delhi's IGI airport, the government announced on 24.6.2017.

  • Civil Aviation Minister Ashok Gajapathi Raju announced that "in-principle clearance has been granted" for the greenfield airport at Jewar.

  • Like other major infrastructure projects that benefit real estate markets, the Jewar airport, too, is expected to change the property market dynamics in Noida and the adjoining areas.

Connectivity To Airport

Need Of The Airport

  • A lot of international visitors have been avoiding Noida and Greater Noida as they fall off-route. Gurugram has always had the edge because of its proximity to the airport, and has been supporting brisk business. Now with an international airport in the region, Noida and Greater Noida's existing export-import businesses would get a major push

  • With the airport, we expect a lot of multinational companies setting up base in and around Jewar. Uttar Pradesh presently has the mandate of creating 70 lakh jobs. The companies and the ancillary industries which grow around it will lead to the job generation.

  • Jewar airport can shift the concentration of multinational and domestic companies, as well as, property seekers from Gurugram to Noida
  • This kind of economic activity would increase the demand of the real estate sector.

TAJ INTERNATIONAL AIRPORT

  • The project is to be developed on the Public-Private Partnership model.
  • GMR, which operates the IGI airport, will get the first right of refusal to build the Jewar airport because of the terms accepted by the government while giving it the contract to modernize and expand IGIA.

Political Hurdles Faced

  • Jewar Airport plan was conceived under Rajnath Singh-led BJP government in UP in 2001.
  • With the changing of various governments the plan was kept on table for years until 2017 when BJP came into power yet again with full majority.
  • The proposed airport would go against the existing policy as the distance between the proposed site for the new venture and the IGI Airport in Delhi is less than 150km.

Political hurdles faced

  • Under RoFR norms, the existing airport operator (GMR in this case) will be asked to match the lowest bid arrived at after the bidding process for the proposed Jewar airport. According to the rules, GMR's bid will be accepted only if it is equal to or less than 10% of the bid offered by the lowest bidder. 

What will be the effects of Jewar Airport on nearby locations ?

  • The airport will provide a huge impetus to development in Noida, Greater Noida, Ghaziabad, Meerut, East Delhi .
  • The areas on the Yamuna Expressway till Aligarh, Mathura and Agra Jewar Airport will be the nearest airport.
  • This airport will not just address the aviation needs of Delhi.

DELHI AIRPORT (IGIA) FACT SHEET

  • In 1986 Delhi airport was renamed as IGIA and in 2006 GMR signed an agreement with airport authority and created a subsidiary company by the name DIAL
  • IGIA is capable of handling 62 million passengers per annum
  • In 2016-17 IGIA handled 57.7 million domestic and international passengers with 858 thousands tones of cargo.
  • Won the best airport award for 2 years.
  • IGIA has 30% air traffic share of India and generated a profit of 1500 Cr in 2015-16.
  • Accounted for 1.06 Lakh employment across various activities.
  • Catalytic effect is seen in 10km region with all topmost companies setting up their base in Gurugram.
  • Increase in property prices to almost 10 times in last 10 years.

DELHI AIRPORT (IGIA) FACT SHEET

What will be the effects of Jewar Airport on IGIA?

  • As the IGIA will exceed its passenger handling capacity in 5-6 years, shifting the passenger load to Jewar Airport will ease the load on IGIA & will also cater the needs of passengers & airlines

  • Airlines may not like to split operations at two nearby airports given the high fixed cost, unless ofcourse they can't add any further slots or cargo handling space at IGIA.

What will be the effects of Jewar Airport on Agra ?

  • An airport in Jewar region is a must as people from Agra come to take international flights from IGI Airport.
  • Tourism of Agra will increase as there is a great connectivity from Jewar to Agra through Yamuna express highway & it is located around 124 KM away from Agra.
  • As Agra Airport has a capacity of handling 250 passengers only during peak hours and only Air India is the operating carrier people will prefer to fly from Jewar airport which will result in loss of revenue for Agra airport.

What will be the effects of Jewar Airport on Jaipur?

  • Tourism of Jaipur will increase as Jewar will be the international airport and it will be connected well with various different countries unlike Jaipur Airport.

  • Jaipur Airport can handle up to only 1000 passengers at a time and very few carriers flies to & from Jaipur Airport so passengers will prefer to fly from Jewar Airport.

Implications In Business

  • Boost Real Estate Business.
  • Rapid Growth of Hospitality services.
  • Create employment opportunities for thousands of people.
  • Flourish Tourism Business in nearby places like Agra, Mathura etc.
  • Development of Rural Areas.
  • Industrialists would benefit from this.

Real Estate Business

  • Spur higher economic activity in the entire region and will also boost the property market overall.
  • Prices of land would increase.
  • More housing projects to come up.
  • A boon to office space demand.
  • Increased demand for warehousing.

Hospitality Business​

  • New Hotels to come up in and around jewar.
  • New restaurants to open up.
  • Provide employment to thousands of people.

Florish Tourism

  • As Agra and Mathura are nearby hence tourism will flourish.
  • Increase revenue for state because of more tourists.
  • Expansion of business for travel agents.
  • Increase employment opportunities for cab drivers.

Development Of Rural Areas

  • Village area would be developed by government.
  • New schools and hospitals would open up.
  • Farmers would be paid higher amount for their land.
  • Employment opportunities for villagers.
  • Connectivity to nearby areas would be better with the upcoming FNG’S and Expressway’s.

Increased Revenue

  • Government would earn higher revenue by linking airport with metro services.

  • As Airport contributes to a large scale revenue for government hence, by setting up airport at Jewar, Government would earn higher revenues from the state.

Challenges Ahead (JEWAR AIRPORT)

  • With over 20 villages with a population of 57,000 expected to give land for the Jewar airport, land acquisition could be an uphill task.

  • Locals express doubts about rehabilitation as well as receiving compensation.

  • Environmental Clearation certificate is one of the main concerns.

  • Will create problems for Domestic Airlines to set up things from the scratch.

NEED FOR SECONDARY AIRPORTS

  • BACKUP SOURCE
  • TO HANDLE NEW FLEETS
  • TO HANDLE THE TRAFFIC OF PAX/TRANSPORT
  • TO ATTRACTE O&D TRAFFIC
  • TO ATTRACTE LCC/LCA

MAS:

  • Focuses on airports serving commercial traffic (and leaves out military bases)
  • Refers to a metropolitan region rather than a city (and thus may contain several independent cities)
  • Looks at significant markets (and ignores those below some useful threshold, such as Houston/Ellington or Madrid/Torrejon, that serve only 0.1 million passengers or less)
  • Concerns the total market (not just that portion managed by a specific operator, such as BAA)

CITIES WITH TWO AIRPORTS (GLOBAL)

US-Buffalo,new york

Buffalo Niagara International Airport

Niagara falls international airport

JAPAN,SAPPORO

New chitose airport

Okadama airport

ITALY,VENICE

Venice marco polo airport

Trevico airport

GERMANY,FRANKFURT

Frankfurt airport

Frankfurt-hahn airport

IMPLICATION OF MAS

  • Revenue of primary airport

  • Forecasters using wrong mental model

  • Confusion with the primary and secondary airports

Forecasters using wrong mental model

  • The forecaster or planner should be considering many factors for planning.

  • Example:-
  • 4Washington/Dulles –planned as major DC airport, but had only ~ 3M Paxfor 20 years 4London/Stansted.
  • Similar story –only developed with Ryanair hub around 2002

LCC/LCA

  • A low-cost carrier or low-cost airline (also known as no-frills, discount or budget carrier or airline, or LCC) is an airline without most of the traditional services provided in the fare, resulting in lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge for extras such as food, priority boarding, seat allocating, and baggage. 

  • Also minimizing the airport infrastructure and normal facilities provided by the airports.

Example:-

> Singapore is spending US$ 1 billion on Terminal 3 (~ US$40 million/gate) 41stclass facility, 5 stories, beautiful

> In early 2005 S’pore decided to build low-cost terminal to open Mar 2006 4~US$ 25 million (US$ 4 million/gate) 41 level, absolutely simple​​​​​​​​​​

Proposed projects for other multi airports cities in India

Navi Mumbai International Airport:

  • Navi Mumbai International Airport is an under construction greenfield international airport being built at Kopar-Panvel in Maharashtra, India.

  • It is being developed as the second international airport for the Mumbai Metropolitan Region.

  • . It will function alongside the Chhatrapati Shivaji International Airport(CSIA) and will make up India's first urban multi-airport system.

  • The Mumbai airport at present is choked and airlines continuously complain of no slots and aircraft parking. Flights also have to hold over Mumbai airport sometimes, leading to frustrated passengers.

Mopa International Airport (Goa):

  • Mopa Airport is an under construction Greenfield airport being built at Mopa in Pernem Taluka, North Goa.
  • GMR Infrastructure Ltd. won the bid to build Goa's second airport.
  • The airport is expected to have a capacity of 13.1 million passengers.
  • Flights are expected to start around 2020.
  • The current Dabolim airport cannot be expanded as it is a naval facility where AAI runs a civilian section that offers few flights.
  • Airlines often complain of no landing slots being available at the airport.

Secondary airport in Chennai:

  • A few sites in districts around the city are being considered for a greenfield airport for Chennai.
  • About 3000-5000 acres of land will be needed for the construction of the new airport.
  • A second airport for the city is necessary as the existing facility may reach saturation point and may not be able to meet commuters needs in the future.
  • The integrated terminal will have a capacity to handle five million passengers. It will cater to spill over traffic from the existing airport.

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