Hubballi Airport set for privatization: 30 year contract to be awarded to a private player

Hubballi

The central government is moving forward with plans to award a 30-year contract for the development and management of the Hubballi Airport to a private entity. This decision comes as the airport, which has been underperforming in terms of revenue, has already been integrated with the Bhubaneswar International Airport.

The privatization of airport management has sparked protests from various organizations, including the Congress party, especially when a similar contract was awarded to the Adani Group for Mangalore Airport management.

Under a revenue-sharing model, the management of airports in Delhi and Mumbai has also been handed over to private companies. Approximately half of the annual revenue generated goes to the Airports Authority of India (AAI). For Mangalore Airport, payments to the AAI are based on the number of passengers. However, the specifics regarding the nature of private management at Hubballi Airport remain unclear.

The tender for this privatization will be awarded to the company that submits the highest bid. Currently, there are about 70 staff members under the AAI at the Hubballi Airport, while over 250 additional employees are employed by various agencies. The company awarded the tender will have the liberty to hire its personnel.

Sources have indicated that a new terminal building is under construction at a cost of ₹320 crores, with completion expected by March next year. While a private company will take over management and development responsibilities, AAI will still oversee air traffic control (ATC), communication, navigation, and surveillance systems (CNS).