Future Jewar and Greenfield Airport returns will depend on Center State equations
That is, there is no explicit approval for airlines to bring international passengers to the airport. It is a subject that will gain in importance as the airport comes to an end. Foreign airlines will push for improved access to capture more of the Indian market, while domestic airlines are likely to want to keep current capacity while adding the airport as a stopover point. Strong positions on both sides of the aisle are almost certain.
The airport offers additional access to an important market
A confluence of factors continues to favorably contribute to the growth of the market. On the one hand, there is the push for infrastructure development. Add to that the digitization of the economy that has occurred through Bank Accounts, Identification (ADHAAR) and the mobile phone revolution. All together within the country, it is easy for information, goods, capital and labor to move. As access increases, so do aspirations. Add to that the demographics where the majority of the population is in the 20-30 age bracket and consumerism is almost certain.
Internationally, what also helps India is the geopolitical dynamic where companies seek to reduce supply chain risks and effectively envision a “China + 1” strategy. With abundant liquidity in Western markets, foreign capital is looking for yield, and the Indian market ranks high among all considerations. As more businesses and citizens capitalize on the Indian opportunity, connectivity will facilitate these capital and trade flows. But for this market, access remains critical. And this is where bilateral aviation agreements will play a key role.
Access is conditional on modified bilateral agreements: a prerogative of the center
Until recently, with an emphasis on protecting airport monopolies, secondary airports were not allowed to appear. And that meant that all traffic was constrained to one airport. Jewar is a challenge to this paradigm. But to attract international traffic carried by national and international airlines, the center will have to review bilateral agreements. Not for one country but for several. Which means an amendment to each bilateral. And within Indian aviation players, there will inevitably be strong positions for and against such a decision. And to be sure that the countries on the other end will be sure to take advantage of this to initiate a negotiation.
The center will play a key role in the success of the airport
A bilateral subsidy that is tilted to one side also limits the ability of Indian airports and airlines to grow and compete effectively, which has an impact on the entire aviation value chain and on the economy. local and national economy. Yet this must also be weighed against the fact that the Indian traveler base and the Uttar Pradesh voting base are demanding better services, better rates and greater access which must be taken into account. The government will have its work cut out for it and strike a delicate balance with the right support, messaging and stakeholder engagement.
For Jewar, as with other airports to come, the central state equations will need to be carefully considered and will be critical to success.
– Satyendra Pandey is the Managing Partner of Aviation Services Company AT-TV. Opinions expressed are personal
(Edited by : Ajay Vaishnav)