Whalesbook
IndiGo's Traffic Forecast and Cost Demands
IndiGo takes a bullish view on the Navi Mumbai International Airport (NMIA), calling current traffic estimates too conservative. The airline notes more than 140 daily movements already occur near the site, suggesting potential for about 9.4 million annual seats. With a 90 percent seat factor, IndiGo forecasts NMIA could carry nearly 8.5 million passengers in its first year, likely filling its initial capacity due to fleet expansions.
However, IndiGo stresses that sustainable growth demands competitive operations. The airline urged airport charges to remain manageable for carriers and travelers, noting proposed landing fees at NMIA are higher than at Mumbai (BOM) and Jewar (DXN).
Air India, IATA Warn of Dual-Airport Costs
The Air India Group and the International Air Transport Association (IATA) are raising alarms about the "logistical and financial strain" of operating two airports simultaneously. Air India points out that running parallel operations requires duplicate staff, equipment, and resources, significantly increasing operating expenses.
Shashi Chetia, Air India's head of airport planning-commercial, questioned the assumption of strong airline willingness to use NMIA, citing the higher costs of maintaining dual operational bases.
IATA shares these concerns, warning of "inherent uncertainty" during a dual-airport system's initial years. The speed of airline relocation, IATA noted, will depend heavily on infrastructure readiness and the difference in airport charges.
Adani Seeks Recovery of Airport Development Costs
The operator, Adani Airport Holdings (NMIAL), is pushing to recover substantial capital expenditure. The company is discussing pre-development costs with AERA, which cover essential work like hill blasting and river diversion. NMIAL argues this work is crucial for the project's viability and seeks full recovery of incurred expenses.
Adani Airport Holdings stated the total project cost for Phase 1 & 2 is about Rs 17,920 crore, not including financing costs or other claims. The operator emphasized that recovering losses from before the Commercial Operations Date (COD) is vital for the airport's long-term sustainability, especially considering the project's significant challenges.