Archive · 28 May 2025
TN to Compensate AAI If Parandur Airport Opens First
The Tamil Nadu government will pay the Airports Authority of India (AAI) if the new airport in Parandur opens before Chennai's airport gets 35 million passengers per year.
This agreement came up during a meeting about the new airport.
The AAI wanted compensation because the new airport is close to Chennai's airport.
Chennai airport currently serves 30 million passengers.
The new Parandur airport is expected to open its first phase in 2028.
The Airports Economic Regulatory Authority (AERA) also mentioned that the first phase of the terminal might be too small for the expected number of passengers.
Tamil Nadu will compensate AAI if Parandur airport opens before Chennai's traffic reaches 35 MPPA.
The agreement was made during a steering committee meeting in New Delhi.
AAI requested compensation due to the proximity of the new airport to Chennai's airport.
Chennai airport currently handles 30 million passengers annually.
The first phase of the Parandur airport is estimated to be completed in 2028.
- Who
- The Tamil Nadu government and the Airports Authority of India (AAI).
- What
- The Tamil Nadu government will compensate the Airports Authority of India (AAI).
- When
- The agreement was made during a steering committee meeting on March 12.
- Where
- The agreement involves Chennai and the proposed Parandur airport in Tamil Nadu.
- Why
- AAI should be compensated if Parandur becomes operational before Chennai airport reaches its target of 35 MPPA.
Airports Economic Regulatory Authority (AERA)
Tidco
Terminal Size vs. Passenger Capacity
Airports Economic Regulatory Authority (AERA)
AERA believes the proposed size of the first phase terminal cannot handle the anticipated passenger volume and recommends optimization of aeronautical infrastructures to control tariffs.
Tidco
Tidco believes the first phase terminal can handle 20 million passengers.
- State
- Tamil Nadu
- Compensated Party
- Airports Authority of India (AAI)
- Existing Airport Location
- Chennai
- Proposed Airport Location
- Parandur
- Chennai Airport Target
- 35 million passengers per annum (MPPA)
- Parandur Airport Phase 1 Completion (expected)
- 2028
- Parandur Airport Estimated Cost
- 27,000 crore