Industry
India has big-city ambitions for its small airports. And for its big cities to have more.
Summary
- While metro airports are of the scale of aviation hubs that can handle passenger traffic, India aspires for its airports in tier-2 and tier-3 cities such as Amritsar, Jaipur, Indore and Pune to grow to that size. But what will it take for that to happen?
India has about a half dozen airports handling enough passengers to be worthy of being considered as hubs. In about 20 years, it could have up to 25.
A hub airport, also known as an airline hub or aviation hub, is a central airport that serves as a key connecting point for flights in an airline’s network. Delhi’s Indira Gandhi International Airport is a hub for Air India and IndiGo.
The civil aviation ministry has now conducted a preliminary assessment as it looks to set up 20-25 hub airports over the next 20 years to keep pace with the growing demand for air travel in India, two officials aware of the development toldMint.
“We see potential for at least 20-25 airports, including those in metros, to become hub airports," one of them said.
“While the metro airports are already at the scale of a hub airport, those in tier-2 and tier-3 cities such as Amritsar, Jaipur, Indore, Pune, Varanasi and Coimbatore have the potential to grow to a size over the next 20 years that will allow them to handle 15-17 million passengers a year."
Indian airports handled 376.4 million passengers in 2023-24, 15% more than in the previous year, as per air traffic data from the Airports Authority of India. Delhi’s airport was the busiest, handling 73.7 million passengers, up 13% from FY23, while passenger traffic at Mumbai airport increased 20% to 52.8 million in FY24.
Bengaluru airport handled 37.5 million passengers, Cochin airport clocked 10.4 million, Pune 9.5 million, Varanasi and Amritsar around 3 million, and Coimbatore 2.9 million.
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Pragya Priyadarshini, vice president at Primus Partners, a consulting services company, said the ministry’s plan augurs well for India’s aviation industry, and that the country’s location makes it an ideal transit point for global air traffic.
“This expansion aligns with the country’s rapidly increasing air travel demand, driven by a growing middle class and economic development," said Priyadarshini.
“Successful implementation will require substantial investment in infrastructure, developing a skilled workforce, and collaboration between the government and the private sector to ensure long-term viability and competitiveness."
When one just isn’t enough
Separately, the civil aviation ministry has also assessed more than 10 Indian cities where a second or third airport may be needed over the next 20 years or so, a third official toldMint.
“We see the need for a second or even a third airport in at least 10 Indian cities and some of such plans are already underway. These include cities such as Chennai, Leh, Chandigarh, Bengaluru and Dehradun," this official said.
“This is largely because of challenges such as unavailability of land for airport expansion—either for runways or terminal buildings—along with saturation of airports’ capacity over time."
All three officials spoke on condition of anonymity. The civil aviation ministry did not reply to emailed queries.
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The development comes at a time when Indian airlines such as IndiGo, Air India and Akasa have over 1,500 aircraft on order, 1,120 of which have been ordered in the past 18 months.
“Given this backdrop, it’s imperative that we develop airport infrastructure—both greenfield and brownfield airports," said Jagannarayan Padmanabhan, senior director and global head of transport, mobility and logistics, and consulting atCrisil Market Intelligence and Analytics.
“A typical medium-capacity airport (8-10 million passengers a year) will take 5-7 years to complete, including land acquisition. There will be a need for more regional airports, and second and third airports in metros," he added.
Work on new airports near Delhi (Noida airport in Jewar) and Mumbai (Navi Mumbai airport) is expected to begin next year.
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“The need for additional airports is particularly acute in high-traffic cities where existing infrastructure struggles to keep pace with demand. Factors such as passenger load and proximity to primary airports are crucial in determining the viability of new airports," Priyadarshini said.
“The decision to build new airports must be based on careful analysis of long-term demand projections and economic feasibility."
