+
AAI to diversify into airport management services
AVIATION & AIRPORTS

AAI to diversify into airport management services

State-owned airport operator Airport Authority of India intends to offer airport management services in order to ring fence its future profits. Since the government intends to lease the top 25 AAI-owned airports to private businesses, diversification has become imperative.

The administration of airport operations, including airside, terminal, and other services like parking, food and beverage outlets, is included in the management services provided by the airport. AAI will also offer the airports navigation and air traffic management services. Leading government officials claimed that it was now essential for revenue diversification and keeping a consistent labour force with experience in airport management.

Thus, AAI and the government of Uttar Pradesh have a 30-year agreement for the operation and management of five state-owned airports: Aligarh, Azamgarh, Chitrakoot, Muirpur, and Shravasti. Similar contracts between AAI and Steel Authority of India (SAIL) have also been inked for the operation of Rourkela (Odisha), Bokaro (Jharkhand), and Burnpur (West Bengal).

These SAIL-owned airports currently operate non-scheduled flights for SAIL aircraft or VIP transportation. These airports will be able to conduct commercial operations under AAI's administration.

"Several corporate entities, PSU behemoths, and state governments own airport strips that, with proper management, may support regular commercial jet operations. They are urged to collaborate with AAI on this as AAI has the knowledge and personnel to oversee such operations. Thus, this may prove to be a new source of income, according to a government official. He continued by saying that the authority and the Karnataka government were having a similar conversation on the Shivamogga airport, which had recently completed construction of a new terminal.

The government leased six more prestigious airports to the Adani group last year, in addition to the earlier privatisation of Delhi, Mumbai, Bangalore, and Hyderabad airports. Another 25 AAI airports have been designated for asset monetisation by 2025 under the National monetisation Pipeline.

"Because the government intends to privatise the majority of the major airports, AAI must locate other locations for the deployment of its staff. These are highly skilled individuals, and they are capable of managing such a wide range of operations, according to the official. When airports are privatised, AAI employees have the option of accepting terms and conditions-based employment with the new owner. Employees up to the level of assistant general manager will remain posted at respective airports for a further three years, per the concession agreement signed with the Adani group during the privatisation of six airports in Lucknow, Ahmedabad (Gujarat), Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.

State-owned airport operator Airport Authority of India intends to offer airport management services in order to ring fence its future profits. Since the government intends to lease the top 25 AAI-owned airports to private businesses, diversification has become imperative. The administration of airport operations, including airside, terminal, and other services like parking, food and beverage outlets, is included in the management services provided by the airport. AAI will also offer the airports navigation and air traffic management services. Leading government officials claimed that it was now essential for revenue diversification and keeping a consistent labour force with experience in airport management. Thus, AAI and the government of Uttar Pradesh have a 30-year agreement for the operation and management of five state-owned airports: Aligarh, Azamgarh, Chitrakoot, Muirpur, and Shravasti. Similar contracts between AAI and Steel Authority of India (SAIL) have also been inked for the operation of Rourkela (Odisha), Bokaro (Jharkhand), and Burnpur (West Bengal). These SAIL-owned airports currently operate non-scheduled flights for SAIL aircraft or VIP transportation. These airports will be able to conduct commercial operations under AAI's administration. Several corporate entities, PSU behemoths, and state governments own airport strips that, with proper management, may support regular commercial jet operations. They are urged to collaborate with AAI on this as AAI has the knowledge and personnel to oversee such operations. Thus, this may prove to be a new source of income, according to a government official. He continued by saying that the authority and the Karnataka government were having a similar conversation on the Shivamogga airport, which had recently completed construction of a new terminal. The government leased six more prestigious airports to the Adani group last year, in addition to the earlier privatisation of Delhi, Mumbai, Bangalore, and Hyderabad airports. Another 25 AAI airports have been designated for asset monetisation by 2025 under the National monetisation Pipeline. Because the government intends to privatise the majority of the major airports, AAI must locate other locations for the deployment of its staff. These are highly skilled individuals, and they are capable of managing such a wide range of operations, according to the official. When airports are privatised, AAI employees have the option of accepting terms and conditions-based employment with the new owner. Employees up to the level of assistant general manager will remain posted at respective airports for a further three years, per the concession agreement signed with the Adani group during the privatisation of six airports in Lucknow, Ahmedabad (Gujarat), Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code