Centre clears in-principle leasing of 11 AAI airports in five bundles

The Centre has given in-principle approval to lease out 11 Airports Authority of India airports through five bundled concessions, according to an official document reviewed by business media on 25 August 2026.

The decision follows extensive inter-ministerial consultations. Bundling is intended to make smaller or less commercially attractive airports more viable for private operators by pairing them with stronger assets.

The 11 airports have not been named in the public summary. Previous rounds of airport leasing under the AAI model transferred operations of major facilities such as Delhi, Mumbai, Bengaluru and Hyderabad to private consortia under long-term contracts.

The new package continues that approach while adjusting the commercial structure. Private operators will take over management, development and commercial rights while AAI retains ownership of the land and core aeronautical assets.

The move is expected to attract fresh capital for terminal expansion, cargo facilities and non-aeronautical revenue streams. Timeline for the formal tender process has not been announced.

Opposition parties and some employee unions have previously criticised airport privatisation on grounds of strategic control and job security. The government maintains that the model improves service quality and reduces the fiscal burden on AAI.

Once the detailed request for proposals is issued, bidders will assess traffic forecasts, existing infrastructure and the precise terms of each bundle. Until then the in-principle nod marks the policy decision to proceed.