The central government has expedited the process of handing over 11 airports in the country to private companies. As part of this, the Airports Authority of India has issued an Expression of Interest (EoI) for bundling (bundling) Tirupati Airport in Andhra Pradesh with Tiruchi International Airport in Tamil Nadu. Private companies will take care of the management, development and modernization of these airports under the Public-Private Partnership (PPP) model.

This time, the center is following the bundling approach for the first time. To increase commercial profitability, a less crowded airport is being paired with a crowded airport. It is estimated that about Rs. 8,622 crore will be invested by private companies for the development of these 11 airports. The main objective of this is to improve the infrastructure of the airports and increase non-aeronautical revenue (retail, cargo).

Passenger traffic at Tirupati Airport has increased significantly due to the arrival of Tirumala pilgrims and tourists. Currently, daily flights are operating from here to cities like Hyderabad, Bengaluru, Delhi and Mumbai. In the future, as the number of passengers increases, the possibility of privatizing Rajahmundry and Kadapa airports in a similar manner is being considered.

As part of the lease agreement, private companies will have to retain 60 percent of the Airports Authority staff for the first three years. While the ownership of the airports will remain with AAI, only the management responsibilities will be transferred to private companies. The process has now reached the bidding stage.