Executive Summary:
This document summarizes the Ministry of Civil Aviation's response to questions raised in Lok Sabha regarding the performance of airports, specifically focusing on those leased out in 2019 under Public-Private Partnership (PPP). It addresses comparative assessments, adherence to eligibility norms, user fees, capital investment, employment changes, and complaint management related to these airports. The report references data from 2024 and includes annexures for detailed rankings and fee comparisons.
Key Points / Main Content:
Airport Service Quality:
* Passenger satisfaction is measured via Airport Service Quality (ASQ) surveys conducted by Airport Council International (ACI).
* Average ASQ ratings and world ranks for AAI-operated airports, AAI airports leased under PPP after 2019, and other PPP airports for 2024 are detailed in Annexure I.
Bidding Process:
* The Empowered Group of Secretaries (EGoS), chaired by the CEO of NITI Aayog, finalized the bidding process for six AAI airports under PPP in 2018.
* The bidding process included provisions like "no prior airport experience" to encourage more bidders and increase competition.
* AAI received 32 bids from 10 entities, and the six airports were leased to the highest bidders following due procedure, with no deviations from the EGoS-defined contours.
User Fees and Charges:
* Details of User Development Fee (UDF) and other major charges at the six AAI airports leased after 2019 compared to similar PPP airports are in Annexure II.
* UDF charges are comparable to other PPP airports, except for Delhi and Mumbai.
* Passenger Service Fee (PSF)-Security Component is now termed Aviation Security Fee (ASF), levied at Rs. 200 for domestic and USD 12 for international departing passengers, used for airport security expenditure.
Capital Investment and Employment:
* The Airports Economic Regulatory Authority of India (AERA) has allowed approximately Rs. 13681 crore in capital expenditure for these six airports for the current control period.
* Additional investments by PPP partners are expected to increase economic activity and create additional jobs.
Monitoring and Compliance:
* AAI monitors PPP partner performance and compliance through Independent Engineers, Auditors, and Inspections, as per the agreements.
* Concessionaires must periodically submit reports on Key Performance Indicators and service quality to AAI.
* AERA determines tariffs for aeronautical services at major airports using a uniform methodology, irrespective of ownership.
Impact Analysis:
Airports Authority of India (AAI):
* Impact: Responsible for monitoring the performance and compliance of PPP partners, as well as receiving and reviewing periodic reports.
* Action Required: Continue to monitor performance through Independent Engineers, Auditors, and Inspections and ensure PPP partners submit required reports.
PPP Partners (Leased Airports):
* Impact: Required to make capital investments, maintain service quality, and comply with AAI's monitoring. Subject to AERA tariff regulations.
* Action Required: Make planned capital investments, achieve Key Performance Indicators, maintain service quality standards, and submit periodic reports to AAI.
Airports Economic Regulatory Authority of India (AERA):
* Impact: Determines tariffs for aeronautical services at major airports.
* Action Required: Continue to apply a uniform tariff methodology across major airports, regardless of ownership.
Passengers:
* Impact: Subject to User Development Fees (UDF) and Aviation Security Fees (ASF). Benefit from airport development and potential service improvements.
* Action Required: Be aware of applicable fees (UDF, ASF) when utilizing airport services.
Government of India (Ministry of Civil Aviation):
* Impact: Accountable for the overall performance of airports and adherence to established policies.
* Action Required: Oversee the performance of airports and ensure adherence to policies and regulations.
Key Entities Referenced
Ministry of Civil Aviation: The Indian governmental body responsible for the formulation and administration of rules, regulations and policies relating to civil aviation in India.
Airports Authority of India AAI: A statutory body responsible for creating, upgrading, maintaining and managing civil aviation infrastructure in India.
Public Private Partnership PPP: A collaborative arrangement between a government agency and a private sector company that can be used to finance, build, and operate projects, such as airports.
Airport Service Quality Survey ASQ: A survey conducted by Airport Council International (ACI) to measure passenger satisfaction at airports.
Airport Council International ACI: A global trade representative of the world's airports.
Airports Economic Regulatory Authority of India AERA: An independent tariff regulator that determines the tariff for aeronautical services provided at major airports in India.
User Development Fee UDF: A charge levied on passengers using airports, generally for the purpose of funding airport infrastructure development.
NITI Aayog: The premier policy think tank of the Government of India, providing both directional and policy inputs.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
Lok Sabha
UNSTARRED QUESTION NO. : 3034
( TO BE ANSWERED ON THE 7th August 2025 )
PERFORMANCE OF AIRPORTS
3034. SHRI SAPTAGIRI SANKAR ULAKA
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) whether comparative assessments based on service quality,
Airport Service Quality rankings, cargo efficiency and passenger
satisfaction indicate significant differences between the set of
airports leased out in 2019 and other Public-Private Partnership
(PPP) airports and if so, the details thereof;
(b) whether the leasing process conducted in 2019 fully adhered to
standard financial and technical eligibility norms including prior
airport operations experience and if so, the details of any deviations
from these norms;
(c) the current User Development Fee (UDF), Passenger Service Fee
(PSF) and other major charges levied at the airports leased in 2019
as compared to similar PPP airports along with the reasons for any
higher tariffs;
(d) the capital investment made and the change in direct and
indirect employment at these airports since their takeover in
comparison with the original bid commitments and with other PPP
operators; and
(e) the number and nature of complaints received regarding pricing
or service deficiencies at the 2019-leased airports and the
regulatory or contractual actions taken in response thereto?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION
(Shri Murlidhar Mohol)(a): Passenger satisfaction at major airports operated by Airports
Authority of India (AAI), airports of AAI leased under Public Private
Partnership (PPP) after 2019 and other PPP airports is measured
through Airport Service Quality Survey (ASQ) conducted by Airport
Council International (ACI). The average ASQ rating & world rank of
these airports during 2024 is at Annexure-I.
;
(b): In 2018, Government of India constituted the Empowered Group
of Secretaries (EGoS) under the Chairmanship of CEO, NITI Aayog,
to take forward the bidding process of six AAI airports under PPP.
EGoS finalized the contours of the bidding process which inter-alia
included various provisions viz. no prior airport experience etc.
These provisions ensured that there are more bidders ensuring more
competition. As a result, AAI received a total of 32 bids from 10
entities for its PPP proposal of six airports and thereafter following
due procedure, these six airports were leased to the highest bidder.;
There was no deviation in the bidding process from the contours as
was decided by EGoS.;;
(c): The details of User Development Fee (UDF) and other major
charges levied at the six AAI airports leased after 2019 as
compared to similar PPP airports is enclosed as Annexure-II. The
UDF charges at these six leased-out airports are quite comparable
to those at other PPP airports, except for Delhi and Mumbai. ;
Passenger Service Fee (PSF)-Security Component has now been
termed Aviation Security Fee (ASF) and is levied currently at the
rate of Rs. 200/- for embarking domestic passenger and USD 12 for
embarking international passengers. ASF is utilized to meet
expenditure on providing security at airports. ;
(d): Total Capital Expenditure allowed by Airports Economic
Regulatory Authority of India (AERA), an Independent Tariff
regulator, for these six airports for current control period is
approximately Rs. 13681 crore. Additional investments by PPP
partners leads to increased economic activity, which in turn creates
additional jobs. Development of airports leads to increase in
passenger movements, tourism development, employmentgeneration and augmentation in circle rates of land valuation
resulting into enhanced collection of various taxes/stamp duties
etc., in the respective State and contributes to the overall
development of the Country.
(e): As per the Agreements entered into by AAI with the PPP
partners, the performance and compliance by PPP partners is
subjected to periodical monitoring by AAI through Independent
Engineers, Auditors, Inspections etc.
;
The Concessionaire are required to periodically submit report
regarding achievement of Key Performance Indicators and service
quality requirement to AAI, as specified in Concession Agreement.
As regards airport charges, AERA determines the tariff for
aeronautical service provided at major airports, where it follows a
uniform tariff methodology across major airports, regardless of
ownership.
******Annexure-I
Statement referred in part (a) of reply of Lok Sabha Unstarred Question No.
3034 for answer on 07.08.2025
AIRPORTS SERVICE QUALITY (ASQ) RATING AND RANK OF AAI OPERATED AIRPORTS,
AAI AIRPORTS LEASED UNDER PPP AFTER 2019 AND OTHER PPP AIRPORTS, FOR
2024
2024
S.No Name of the airport
Rating on 5
WORLD RANK
point scale
AAI AIRPORTS
1 Amritsar 4.68 85
2 Bhubaneswar 4.88 67
3 Calicut 4.82 76
4 Chennai 4.91 63
5 Coimbatore 4.75 81
6 Goa 4.92 62
7 Indore 4.82 78
8 Kolkata 4.88 68
9 Patna 4.74 82
10 Pune 4.85 74
11 Raipur 4.83 75
12 Srinagar 4.33 146
13 Trichy 4.89 64
14 Varanasi 4.89 66
15 Chandigarh* 5.00 36
Average of AAI Airports 4.81
AAI AIRPORTS LEASED AFTER 2019
1 Ahmedabad 4.98 52
2 Lucknow 4.99 42
3 Mangalore 4.96 58
4 Guwahati 4.88 69
5 Jaipur 4.98 51
6 Trivandrum 4.82 77
Average of airports
4.94
leased out after 2019
OTHER PPP AIRPORTS
1 Bangalore 4.97 53
2 Cochin 5.00 31
3 Delhi 5.00 1
4 Goa (MOPA) 4.93 60
5 Hyderabad 5.00 1
6 Kannur 5.00 32
7 Mumbai 5.00 1
Average of Private
4.99
airports*Chandigarh airport is operated by CHIAL which is AAI's subsidiary.Annexure-II
Statement referred in part (c) of reply of Lok Sabha Unstarred Question No.
3034 for answer on 07.08.2025
COMPARISON OF UDF CHARGES AT 6 PPP AIRPORTS vis-à-vis OTHER PPP AIRPORTS (FY 2025-26)
6 AAI AIRPORTS LEASED UNDER PPP Other PPP/AAI Airports
Landin Landin Parkin
g Parking g g
Year of
UDF Rates Rates UDF Rates Rates
Airports Leasing Airports
(in ₹) (in ₹ (in ₹ per (in ₹) (in ₹ (in ₹
Out
per MT) per per
MT) MT) MT)
735/315
Bengalur
Mangalore (Emb./Dis 950 49.30 550 510 17
u
emb.)
Ahmedaba Hyderaba
600 441 20.09 750 14.10
d 2020-21 d 440
129/56
Lucknow 950 882 20.09 Delhi
(Emb./Dise 347 18
mb.)
840/360
Thiruvana 175/75
(Emb./Dis 1400 10.65 Mumbai
nthapuram (Emb./Dise 402 13.50
emb.)
mb.)
875/375 840/360
2021-22 Mopa
Jaipur (Emb./Dis 1295 15 (Emb./Dise 850 13
(Goa)
emb.) mb.)
625/265
Guwahati (Emb./Dis 1195 20.09 Kannur 850 485 12
emb.)
Srinagar 1050 - 10.32
Emb. = Embarking Disemb.= Disembarking MT= Metric Ton
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