Centre Approves Leasing of 11 AAI Airports in Five Bundles

The central government has given in-principle approval to lease out 11 Airports Authority of India airports. The assets will be offered in five bundled concessions after extensive inter-ministerial consultations.

Officials said the model aims to attract private capital and operational expertise while retaining strategic oversight. Bundling is intended to make smaller airports more commercially viable by pairing them with higher-traffic sites.

Previous rounds of airport privatisation in India produced mixed results on passenger growth, non-aeronautical revenue and service quality. The new package will incorporate lessons from those contracts, including clearer performance standards and tariff regulation.

The list of the 11 airports has not been publicly detailed in the initial announcement. Bidding timelines and the exact terms of the concession agreements will determine investor interest. Successful transfer could free public capital for other transport projects while expanding capacity at secondary cities.