Bhubaneswar: The Central government has started the process to privatize Bhubaneswar Airport under the Public-Private Partnership (PPP) model. The Airports Authority of India (AAI) has invited tenders in the second phase of airport privatization.
The proposal will move ahead after approval from the Public Private Partnership Appraisal Committee (PPPAC).
What Will Change After Privatization?
Once handed over, a private company will manage most airport operations, including:
Airport management and maintenance
Cleaning and facility services
Passenger parking fee collection
Luggage handling charges
Commercial space operations
However, Air Traffic Control (ATC) and airport security will remain under AAI.
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Bhubaneswar–Hubli Airport “Bundle”
AAI has linked Bhubaneswar with Hubballi Airport (Hubli) as a single package in the tender.
One private company must take over both airports.
Bhubaneswar Airport is profitable.
Hubli Airport is currently running at a loss.
Profits from Bhubaneswar will help develop Hubli.
Revenue Model: Per-Passenger Fee System
AAI will adopt a Per-Passenger Fee (PPF) model.
Every passenger pays a fixed airport fee.
Airlines collect this fee and transfer it to the airport operator.
After deducting operational and infrastructure costs, the remaining income becomes profit.
After privatization, this profit will go to the private operator.
Other income sources include:
Aircraft parking charges
Commercial shops and food courts
Retail outlets and advertising spaces
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Development Under NMP
The airport modernization will be carried out under the National Monetisation Pipeline (NMP) scheme.
The private operator may:
Upgrade infrastructure
Develop commercial complexes
Build hotels and shopping areas near the airport
Improve passenger facilities
The airport authority will receive a share of revenue from these developments.
Staff and Management Impact
After privatization:
Full management control will shift to the private company.
Staff restructuring may take place.
Service delivery is expected to improve under private management.
11 Airports in Second Phase
The Union Civil Aviation Ministry has invited tenders for 11 airports, including Bhubaneswar.
Other airport bundles include:
Varanasi–Kushinagar–Gaya
Amritsar–Jalandhar
Raipur–Silchar
Trichy–Tirupati
In earlier phases, major airports like Delhi, Mumbai, Ahmedabad, Lucknow, Jaipur, and Guwahati were already privatized.
Key Takeaways
Bhubaneswar Airport to be privatized under PPP model
Linked with Hubli Airport as a single tender package
Per-Passenger Fee revenue system to continue
ATC and security to remain with AAI
Infrastructure upgrade under National Monetisation Pipeline
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