Parliament Question: Impact of Privatisation on Airport Services

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 767 ( TO BE ANSWERED ON THE 23rd July 2026 ) IMPACT OF PRIVATISATION ON AIRPORT SERVICES 767. SHRI KULDEEP INDORA Will the Minister of CIVIL AVIATION be pleased to state:- (a) the details of the airports operated under the Public-Private Partnership (PPP) model or through privatisation during the last five years alongwith the airports proposed for privatisation; (b) whether the Government has conducted any independent assessment regarding the impact of privatisation on airport charges, the financial burden on passengers, service quality, regional connectivity and the interests of employees and if so, the details thereof; (c) whether the Government is considering consulting all stakeholders and conducting an impact assessment prior to the privatisation of more airports and if so, the details thereof; and (d) the steps taken to ensure affordable services for passengers and to safegaurds for the rights and job security of employees following airport privatisation? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a): At present, 17 airports, viz. Delhi, Mumbai, Lucknow, Ahmedabad, Mangaluru, Jaipur, Guwahati, Thiruvananthapuram, Hyderabad, Bengaluru, Cochin, Kannur, Durgapur, Mopa, Navi Mumbai, Noida (Jewar) and Nagpur are being operated under the Public Private Partnership (PPP) mode. Further, eleven brownfield airports of Airports Authority of India (AAI) comprising five major airports, namely Amritsar, Varanasi, Bhubaneswar, Raipur and Tiruchirappalli clubbed/paired with six smaller airports have been identified for bringing under PPP. (b) & (c): PPP of airports has helped in attracting private investment, creating world-class airports, delivering efficient and quality services to the passengers,as also reflected in consistently higher service quality ratings of Delhi, Mumbai, Bangalore and Hyderabad airports. Revenue share received by AAI from its airports under PPP has helped in development of airports in Tier-Il & lll cities. A study has also been undertaken through IIM Bangalore to assess the impact of PPP in the Airport Sector and their performance. Further, the PPP process is undertaken in accordance with the extant policy and approval framework under which the proposals are examined and approved by the competent authorities at various stages. (d): Tariff determination for major airports is carried out by the independent statutory regulator, the Airports Economic Regulatory Authority of India (AERA), which ensures that aeronautical tariff, including User Development Fees (UDF) remain reasonable and reflective of efficient airport operations while balancing the interest of all stakeholders. On implementation of PPP at AAI airports, employees of AAI have choice to either remain with AAI or opt to join PPP partner as their employee. ******