India to bundle loss-making and profitable airports to draw investors: Bloomberg
India is set to sell half a dozen non-profitable airports by combining them with profitable ones to make the assets more attractive to investors, according to anonymous sources who spoke with Bloomberg.
This latest privatization effort will include a total of 11 airports, six of which are operating at a loss, anonymous sources familiar with the matter told Bloomberg.
In a statement released in February 2025, the Airports Authority of India (AAI) highlighted that the Indian aviation sector is among the “fastest growing sectors in the world” and announced a capital expenditure plan of Rs 25,000 crore ($2.88 billion USD) for the period from FY 2025 to FY 2029.
However, data from India’s Department of Investment and Public Asset Management (DIPAM) shows that the agency has consistently missed asset sale targets since 2014.
Four pairs of airports will be sold on a one-for-one basis.
Namely, the Lal Bahadur Shastri International Airport (VNS) in Varanasi will be paired with two loss-making airports: Kushinagar International Airport (KBK) and Gaya International Airport (GAY). Biju Patnaik International Airport (BBI) and Sri Guru Ram Das Jee International Airport (ATQ) will be grouped with Hubli Airport (HBX) and Kangra Airport (DHM). Meanwhile, airports in Raipur and Tiruchirappalli will be combined with those in Aurangabad and Tirupati, respectively, according to Bloomberg.
The Airports Authority of India, which currently manages 125 airports nationwide, is close to finalizing the plan and seeking government approval within a month.
The airports will be awarded to whoever bids to share the highest revenue per passenger to the AAI, sources mentioned to Bloomberg. This per passenger revenue system aims to ensure transparency in the sharing of earnings, they added.
The Indian government aims to complete the privatization of these airports by the end of 2025. The post India to bundle loss-making and profitable airports to draw investors: Bloomberg appeared first on AeroTime.
India is set to sell half a dozen non-profitable airports by combining them with profitable ones to make…
The post India to bundle loss-making and profitable airports to draw investors: Bloomberg appeared first on AeroTime.
