AAI to Launch Global Bidding for 11 Airports by December 2026

The Airports Authority of India (AAI) is set to initiate a global bidding process for 11 airports, aiming to diversify investor involvement while curbing excessive market concentration. This new privatization framework is expected to commence by December 2026, with the goal of finalizing transactions by the end of the 2026-27 financial year. Investor roadshows are planned in major international financial hubs, including Dubai and Singapore, to attract potential bidders.

The 11 airports will be organized into five distinct packages, each awarded under a long-term concession agreement lasting 50 years. The proposed groupings include Amritsar and Kangra-Gaggal, Varanasi, Gaya, and Kushinagar, Bhubaneswar and Hubballi, Raipur and Aurangabad, and Tiruchirappalli and Tirupati. This bundled approach is designed to leverage the revenue from busier airports to support the operations and development of smaller regional facilities.

The Public Private Partnership Appraisal Committee (PPPAC) has granted in-principle approval for this initiative, with further consultations anticipated. A significant aspect of the framework is the limitation on the number of packages a single bidder can secure, a measure introduced by the Ministry of Civil Aviation in response to concerns from the Finance Ministry regarding market concentration and the financial risks of excessive borrowing by airport operators. The specific cap on packages is still under discussion.

The government aims to draw in infrastructure investors, sovereign wealth funds, and corporate entities through international promotional events. Additionally, eligibility criteria may be broadened to include companies with relevant experience in other infrastructure sectors, not just established airport operators. Private concessionaires will be tasked with managing airport operations, including passenger terminals and city-side infrastructure, while AAI will maintain air traffic control and communication services.

This upcoming bidding process follows the 2019 privatization of six airports awarded to the Adani Group under similar 50-year agreements. The final terms of the bidding, especially the cap on packages for individual bidders, will play a crucial role in shaping the competitive landscape and determining how the airports will be allocated among potential operators.