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Modernization of Airports

The Airports Authority of India (AAI) is undertaking the development and modernization of all 35 non-metro airports in the country simultaneously and work is due to be completed by March 2010. Wholly owned subsidiaries of AAI are being created for the development and operation of these airports. According to the AAI, it has already awarded work orders for terminal buildings at 13 airports, and for airside development, including runway, taxiway, apron, fire station, control tower and isolation bay, at 19 airports.

Two greenfield airports at Bangalore and Hyderabad are being developed under PPP format. The first phase is planned to be finished by end-2008.
The other two metro airports - Chennai, Kolkata -- may soon be on the modernization path. At least 10 non-metro airports are being developed as strategic airports serving the region or respective states, and at least a few more non-metro airports are being positioned strategically as regional hub airports or nodes providing better connectivity to overall airport network and feeding international network through hub/metro airports.

With these developments in aviation infrastructure, we may also see some airports making money not purely on passenger traffic, but also by means of cargo, logistics, SEZs and real estate projects being developed adjacent to airports.

As per CAPA estimates, domestic passenger movement across airports is likely to grow at a CAGR of 20-25 per cent till 2010, and passenger traffic is expected to increase to around 120 million by 2010. Hence modernization, privatization and development of airports in the form of greenfield and/or brownfield airports is the need of the hour.


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