ABSTRACT
The first airport privatisation took place in UK with British Airports Authority (BAA) in 1987. Since then many other countries have adopted such policies, though the scope and extent of private participation have varied considerably. There are different types of privatisation models which have been applied depending on the government’s objectives, and the specific circumstances and requirements of the airport. India adopted the public–private partnership (PPP) model and developed airports at Cochin (1999), Bangalore (2004), Hyderabad (2004), Delhi (2006), and Mumbai (2006). As on 31 March 2021, there are 125 operational airports under Airports Authority of India (AAI), a statutory body under Government of India. In 2019, India privatised six airports and the bids for all were won by Adani Group, a business conglomerate close to federal ruling party. In the National Monetisation Pipeline (NMP) announced in August 2021, 25 major AAI airports are being considered for monetisation over four years: 2021–22 to 2024–25. During the FY 2021–22, six airports in Tier 2/Tier 3 cities have been identified for monetisation through brownfield PPP models. These would be paired/clubbed with other smaller airports. The Government also informed that it has decided to sell AAI residual stake in already privatised Delhi, Mumbai, Bangalore, and Hyderabad airports. Aviation sector was hit hard by the Covid-19 pandemic.
