With Delhi among 10 busiest airports, dream of Indian aviation hub gets a boost

Ever since Delhi crossed Mumbai to become the largest airport in terms of traffic in FY09, there has been no looking back. The airport has grown from strength to strength, adding an award-winning Terminal 3 and a third runway, and improving services.

With Air India having placed a massive aircraft order and looking to expand rapidly on international routes, it gives a boost to the dream of having one aviation hub in India and attracting global citizens to transit via Delhi.

The automatic publicity that these rankings bring helps both airports and airlines. For airports, it supports aero marketing activities to attract more airlines, while airlines such as Air India or IndiGo can attract connecting passengers.

Delhi ascension into the top 10 is also because other airports performed poorly. The ACI data shows that traffic is still 13 percent short of 2019 levels, yet Delhi airport jumped from 17th to 9th.

India’s air traffic has been resilient after the deadly second wave of COVID-19. A meticulous vaccination campaign led to subsequent waves not having an impact in India in terms of hospitalisation, which boosted travel.

Lastly, it helps the GMR Group strengthen its position in the market. The group has been bidding for rights to operate airports in the region and elsewhere in the world. It was involved in the modernisation of Sabiha Gokcen airport in Istanbul and recently sold its stake in Cebu Mactan airport in the Philippines, apart from winning the right to operate Medan airport in Indonesia.

It got a boost with investments from Groupe ADP. But getting one of its airports into the global top 10 will give it a major push when bidding for such projects. Additionally, this justifies the investments of Groupe ADP, which finalised the valuation just before the lockdown started, with the possibility that it would have been significantly different later.

What from here?

It is too early to tell how this year will end, especially with COVID cases rising in India. But if last year was any indication, air traffic will remain resilient and grow from here on. However, there are challenges that are partially beyond the control of airport operators.

As traffic peaked in December, social media was abuzz with complaints about long wait times at airport entry points and security. With additional baggage-screening machines and staffing, along with reduced aircraft movements, the congestion may have eased for now, but it has created long-term issues.

Delhi’s fourth runway was supposed to have been operational by now. For one or the other reason, it’s been delayed. When it is eventually commissioned, it will help with the addition of aircraft movements. Although the third and fourth runways will not be used simultaneously, staggered take-offs and landing at both runways will help the operator better manage traffic.

The airport will require support from government arms such as immigration, customs, security, and air traffic control, which are controlled by the Ministry of Home Affairs and the Ministry of Civil Aviation, to reach its true traffic potential.

Delhi airport has been in the midst of expansion for the past few years, with 20 percent of the work still pending. Once complete, the capacity will increase to 100 million passengers annually. Yet, peak-time challenges will remain.

Another challenge will be the number of terminals, pushing airlines like IndiGo to a corner in terms of connectivity. The airport had earlier planned international operations at Terminal 1, but that was shot down.

Better and fast connectivity between terminals, removing security bottlenecks for transit passengers, and streamlining entry and security for all will go a long way in ensuring that Delhi not only maintains its Top 10 position but moves up a few positions in the years to come.