Interview

Daniel Bircher
CEO, Zurich Airport International (Asia)
NIAL will set a new benchmark as a Digital Airport…
With the signing of concession agreement between the Government of Uttar Pradesh and Yamuna International Airport Private Limited (YIAPL), a SPV developed by Zurich Airport International AG to commence and develop Noida International Airport at Jewer, all roads are now clear for the much-awaited mega airport project of the Delhi-NCR. The airport to be developed under PPP model has been initially granted licence for 40 years. In an exclusive interview, Vishal Kashyap Managing Editor, Aviation World speaks with Mr Daniel Bircher, CEO, Zurich Airport International (Asia) about details of the upcoming project, operational timelines, viability, passenger facilitation and much more. Excerpts…

What kind of infrastructure is being planned in phase one for Noida International Airport?
Zurich Airport has been top ranked by the World Travel Award, the Skytrax Award, ACI ASQ Award and the Air Cargo Excellence Award over the last 10 years. We see this as a result of our well-functioning processes and passenger flows, our focus on passenger service, our dedication to have a clean and efficient airport with Swissness.

Accordingly, we will put our customers first as we plan and design the airport. We have identified the needs of passengers, airlines and logistics partners for cost-effective, flexible and scalable infrastructure with a specific focus on digitalization and sustainability. Thus, we challenge all our planning premises to ensure that we will be able to provide quick, efficient and simple processes at the best possible value. Developing the 21st century Greenfield airport, we will make sure to leverage digital possibilities as much as possible. In addition, we are developing a sustainable airport ecosystem the will aims at net zero carbon emissions. We see Noida International Airport as complementary and an efficient alternative to Indira Gandhi International Airport which is set to reach its peak capacity of 110 million in the next six or seven years.

How much passenger and number of flights are being projected under phase 1?
We will develop this Airport on 1334 hectares of land. The airport’s first terminal is expected to be ready by 2024 and will open with one runway, generating an additional passenger capacity of 12 Million annual passengers. The project which will fuel the economy and generate 3000-5000 direct and indirect job opportunities in NCR, Greater Noida and the state of Uttar Pradesh.

We will work in close and forward-looking collaboration with the Govt of UP for development of DNIA and meeting the project timelines.

How much area is being dedicated for both aeronautical and non-aeronautical purpose?
We are planning the airport as per Concession agreement for a capacity of 12 Million passengers. This will include the required aeronautical infrastructure as well as commercial offers and services for the passengers, meters and greeters, visitors and the airport community. Additionally, the airport has been allocated 24 hectares of land for city side developments. We are currently analysing the optimal use and development forms for this area. We want to make the airport a destination with attractive retail, F&B and entertainment opportunities for weekend getaways and for travellers to Agra and other important tourist destinations in the area.

The total investment for this airport seems to be huge in number. If we notice revenue patterns of India’s two major airport operators GMR & GVK, it seems to be a challenging affair for you as well. How are you prepared for such scenario?
The project will be constructed with an initial investment of around INR 4,500 crore for the first phase. The initial investment will be firmed upon finalisation of the airport master plan. The Delhi Noida international airport will be a visionary airport for Delhi NCR, NOIDA and Western UP; which will activate the catchment area and connect it to other metropolitan areas in India and the world offering huge potential. We are even optimistic that the location will help in drawing more traffic towards the airport from connected regions, once operational in 2024.

We have a global legacy and experience of over 70 years in building and operating world class airports. We will leverage state of art technology to aid cost-efficient aeronautical processes & commercial offerings across all segments. Customer-focussed processes and infrastructure design will offer quick, efficient and excellent value for passengers, airlines and shippers. The fully-digital Greenfield airport will not only enable contactless travel experience but also accelerate cost-savings across functions. The sustainable airport ecosystem will help us keep the costs low, while extending benefits to partners and customers. Additionally, we will build the airport and nearby infrastructure as the best go-to destination for travel, leisure, business, shopping, entertainment and stay in the country, which shall contribute additional revenues.

Finally, there are several factors that determine that final proposal for a concession. We are convinced about the Indian growth story and we are willing to contribute to the government’s plan to create a 5 Trillion Dollar economy. Disposable income, propensity to travel, economic development in the catchment area and expected growth in air travel are some of these factors. We are also convinced that Delhi, as one of the largest Metropolitan areas on this planet, requires additional airport capacity.

With per passenger fee of Rs 400.97, is this airport going to be bit costly for passengers as well as airlines?
We are keen to work with airlines in India and will offer low-turnaround costs, excellent connecting times and seamless transfer facilities basis state of the art and proven technology for cost-eﬀective aeronautical processes. The airport has been envisaged to provide a congestion-free environment, offering fast connecting time for passengers and airlines and options to optimise ﬂeet utilisation and turnaround timings, supporting airlines with their growth in India and in international markets.

The techno-economic feasibility report by PWC mentions that by 2050, NIA will cater to over 10 crore passengers and around 37 domestic and 31 international destinations. How do you see these projections?
We’re envisaging an airport with two parallel runways to serve over 70m passengers per year at the end of the concession in 2060. The airport will open in 2024 with a single runway and the capacity to handle at least 12m passengers per year. We will develop Noida International Airport on 1334 hectares of land. We are very much aligned with our planning and we are working towards completing the first phase by the expected set deadline.

How the roles of three key parties involved as YIAPL, NIAL and Zurich Airport International (Asia) is being distinguished for general understanding?
• Zurich Airport International AG, a 100% subsidiary of Flughafen Zurich AG, was announced as the preferred bidder for a 40-year concession to design, develop and operate the Greenfield Delhi Noida International Airport in Jewar, in November 2019.

As a diversified business and a listed company, Flughafen Zürich AG operates Switzerland’s most important transport and meeting hub – Zurich Airport. Flughafen Zürich AG has around 1,700 employees across four business areas. The company focuses on its core activities: national and international airport operator, operation of the commercial centres in the landside and airside areas, as well as income-oriented management and further development of real estate at the Zurich location. As its fourth strategic pillar, Flughafen Zurich AG, manages through its International subsidiary, Zurich Airport International AG (ZAIA) airport concessions in Latin America and Asia. The current portfolio under management consists of Zurich Airport, eight (8) airports in Latin America and the new Delhi Noida International Airport in India.

• Yamuna International Airport Private Limited is a 100% subsidiary of Zurich Airport International AG, which has been incorporated as a Special Purpose Vehicle (SPV) to develop the greenfield Delhi Noida International Airport in Jewar. The Government of Uttar Pradesh signed the concession agreement with Yamuna International Airport Private Limited (YIAPL) on October 7, 2020, to commence the development of the Delhi Noida International Airport (DNIA) at Jewar. The company will be responsible for implementing the Public-Private Partnership project together with the Government of Uttar Pradesh, New Delhi Okhla Industrial Development Authority and Greater Noida Industrial Development Authority. Besides the necessary capital investments in the infrastructure, Yamuna International Airport Private Limited shall pay a fixed passenger fee to the state-owned authority starting on the sixth year of commissioning of the new airport.

• NIAL (Noida International Airport Limited) will be the implementing agency on behalf of the Government of Uttar Pradesh.

How the operations will be installed in terms of domestic and international sector?
We believe in the future of aviation in India, and we believe in the growth of New Delhi, the National Capital Region and Western UP. This airport will also be crucial for airlines that need space for strategic growth. Overall, we believe India is a strong market and the domestic demand will fuel the economic recovery after the COVID-19 pandemic. Once the airport is operational, 90% of the initial traffic will be domestic. We will look at collaborating with foreign airlines to enhance international connectivity. We are open to newer opportunities to deliver maximum benefits to our potential partners and customers.

The new airport has an excellent value proposition since it can offer enough space and slots to an airline that want to strategically grow in the NCR region. We are putting a lot of emphasis on developing strong partnerships with our airline customers. An important element for international airlines will be the access to the airport and the fast implementation of planned ground access and connectivity projects by the Government (Metro Extension, Interchange at Eastern Peripheral Expressway and Yamuna Expressway, Western Peripheral Expressway and the High-Speed Rail Connection).

Alike Delhi’s aero city model, is there any plan to develop such commercial infrastructure at the upcoming airport?
Yes, of course, we will build commercial infrastructure to make it an attraction point for airport users as well as visitors. We aim to develop it as the best go-to destination for travel, leisure, business, shopping, entertainment and stay. The destination will offer local and international food, street food and ﬁne dining options for passengers, visitors as well as meters and greeters with convenient and aﬀordable public transport and parking options. With airport stations of the Metro and the proposed Delhi-Varanasi High Speed Rail Corridor, Delhi Noida International airport will have excellent public transport connections.

It is also heard that the airport will have high level of digital connect. Kindly brief more about the airport concept and facilitation.
DNIA will set a new benchmark as a Digital Airport, with implementation of state of the art and proven technology to support contactless travel for passengers. This will be supported by integrated systems and services and the use of technologies such as indoor geolocation, identity management, flow management, data mining and IoT, with adequate security. The digital environment to be set up at DNIA will include a paperless and hassle-free biometric journey across all checkpoints and processors in line with Indian Ministry of Civil Aviation’s DigiYatra Policy and IATA’s ONE ID program. As a digital airport, DNIA will be able to deliver personalized and individual services to millions of passengers.

You mentioned about the potential of logistics at this airport. What kind of setup are you looking forward to?
DNIA will offer a flexible, modular and cost-effective Cargo and Logistics Infrastructure. The airport will provide a flexible and modern infrastructure to allow fast processes and tailored storage capacity, availability of land as well as unrestricted operating hours for better logistical support. There will also be availability of oﬃces and authorities with suﬃcient parking, staging and storage space. DNIA will also offer, convenient & ﬂexible (intermodal) connectivity to and from manufacturing hubs in the catchment area, and with other domestic and international airports that are further connected with seaports and land ports.

(Aviation World Online Edition, Nov-Dec 2020)