Challenges of Airport Privatization in India

Abstract

After implementing economic liberalization in the 1990s, the Government of India (GoI) started privatizing the airports. The deregulation of airports and the private sector participation in airport modernization have increased air passengers, customs, and aircraft movements. The increment of air passengers, aircraft movement, and customs has resulted in the urgency to develop and upgrade airport services. The year 2006 marked an important time to commercialize and privatize Indian airports. A PPP model (Public Private Partnership) has been implemented in several airports. There remain several challenges and constraints for PPP airports. This paper looks at the background regulation of airport development, its characteristics, and the challenges of privatization.