3 days ago
India Plans Next Airport Privatization Wave With Smaller Lots
India is planning to lease another group of 11 airports to private operators.
The proposed leases would last 50 years.
A similar plan covered six airports in 2020-21.
The Airports Authority of India, or AAI, would receive money for every passenger using these airports.
This kind of income became more than 30% of AAI’s total income in 2012-13.
Its share later fell beginning in 2017-18.
The agreements were changed after disruptions linked to COVID-19.
The share has now climbed above 30% again, making the next airport leases financially important.
Six airports were leased for 50 years in 2020-21: Ahmedabad, Guwahati, Jaipur, Lucknow, Mangaluru and Thiruvananthapuram.
The government is proposing a new group of 11 airports under another 50-year agreement.
Under both arrangements, the Airports Authority of India receives a fee for each passenger.
Income from privately operated airports exceeded 30% of the Airports Authority of India’s income in 2012-13.
That share declined from 2017-18 as agreements were redrawn after COVID-19 disruptions, but has now risen above 30% again.
- Who
- The Indian government, the Airports Authority of India and private airport operators.
- What
- The government is considering leasing 11 more airports for 50 years, with AAI receiving a per-passenger fee.
- Where
- The proposal concerns airports in India; the earlier group included Ahmedabad, Guwahati, Jaipur, Lucknow, Mangaluru and Thiruvananthapuram.
- When
- The previous six-airport leases were awarded in 2020-21; AAI income from privately operated airports exceeded 30% in 2012-13, declined from 2017-18 and is now above 30% again.
- Why
- The arrangement would generate passenger-based income for AAI, whose share of income from privately operated airports has returned above 30%.
Key facts
- Proposed airports
- 11
- Proposed lease term
- 50 years
- Previous airport group
- Six airports leased in 2020-21
- AAI payment model
- A fee received for each passenger
- Peak share cited
- More than 30% of AAI income in 2012-13
- Recent trend
- The share is now above 30% again
- Earlier decline
- The share began falling in 2017-18 after agreements were redrawn following COVID-19 disruptions
Sources
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