The upcoming Noida International Airport at Jewar is likely to have cheaper ticket prices compared with Delhi's Indira Gandhi International (IGI) Airport, a News18 report said. In a bid to boost the state's aviation sector, the Yogi Aditynath government slashed VAT on aviation fuel to just 1%. On the other hand, Delhi charges a hefty 25% VAT on aviation fuel, the report added.
With the VAT on aviation fuel reduced to just 1%, it will help the airlines to lower their operational cost as well as make airfares affordable for passengers.
Experts believe that the reduced VAT on fuel will be a turning point. Fuel costs are one of the biggest expenses for an airline, and if that is reduced, it will result in cheaper fares. The Airport Economic Regulatory Authority of India (AERA) will soon start discussions on the fare structure, issue guidelines and set pricing for the airport.
The Jewar airport, which is set to begin operations in April 2025, will accommodate 12 million passengers annually in its first phase, and will eventually expand to handle up to 70 million passengers, further integrating sustainable and innovative solutions into its operations.
This move by the Uttar Pradesh government is seen as a strategic move as it will help people from the Delhi - NCR region with the growing travel demands.
Earlier this week, a successful trial runup was conducted by IndiGo from an Airbus 320 at the runway. The trial flight included officials from the Directorate General of Civil Aviation (DGCA) and the Airports Authority of India, which landed in Noida at 1.25 pm on Monday.
On Thursday, NIA introduced a 24x7 fleet of all-electric taxis in partnership with Mahindra Logistics Mobility to provide a sustainable medium of travel. This new service will provide travellers with comfortable, eco-friendly transportation options from the airport and will minimise walking distances, the airport said in a statement.
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