Zurich Airports win bid to build, operate Jewar airport for 40 years

676 views

Skip to first unread message

Safal Suri

unread,

Nov 29, 2019, 8:35:01 AM11/29/19

to Google Group YEIDA, Google Group YERWA

Source: https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/zurich-airports-win-bid-to-build-operate-jewar-airport-for-40-years/articleshow/72293889.cms

Zurich Airports win bid to build, operate Jewar airport for 40 years

NEW DELHI: Zurich Airports has won the contract to build and operate Jewar Airport in Greater Noida, which will act as the second airport for Delhi, for a period of 40 years that includes construction period of four years in the first phase.

“Under a 40-year concession, Flughafen Zürich AG will build and manage the new greenfield airport in Jewar. The capital investments associated with the first phase is expected to amount to roughly CHF 650 million (about Rs 4,670 crore) during the construction period of approximately four years in the first phase,” said a statement from Flughafen Zürich AG, which currently holds 100% of the project.

The first phase will be able to accommodate around 12 million passengers per year. Besides the necessary capital investments in the infrastructure, Flughafen Zürich AG shall pay a fixed passenger fee to the state-owned authority starting on the sixth anniversary of commissioning of the new airport, read a statement from the airport operator.

Sources said that the company defeated all the other three bidders by far by offering a revenue share of Rs 400.97 per passenger to the authority. The GMR group-led Delhi International Airport Ltd offered to pay Rs 351 per passenger to the authority. Among the other two, the Adani Group offered to pay Rs 360 and Anchorage I&I offered to pay Rs 205 per passenger.

The Jewar airport in Greater Noida will act as a second airport for the capital city, where, a study carried out by government said, that the existing airport is set to exhaust its capacity of over 100 million by 2023-24 – the airport in Jewar is expected to start operations around the same time. Industry analysts believe that with Zurich Airports becoming the owners for Jewar airport would help bring competition among airports, which currently are a monopoly. This is set to bring competition in the market and will benefit airlines.