The opportunity and the challenge in monetizing small airports

When it comes to offering public assets to private players, the airport sector in India has already taken a lead. In early-2019, the government granted 50-year rights to private players to run six airports. The Adani Group outbid rivals for all six. Two years on, the government is reportedly preparing the runway for the next round.

The largest Indian airport assets have a private touch that predates the 2020 sale. Over the last three decades, through various mechanisms, the government involved the private sector in six airports, existing and new. These handled 52% of passenger traffic in 2019-20. The six airports bagged by Adani in 2019 handled another 10%.