MUMBAI

Mumbai Airport is India’s busiest airport for both international and domestic traffic. Until 2006 the airport was operated by the state-owned Airports Authority of India (AAI).

As part of the Indian government’s plan to fund airport modernisation by inviting private sector participation, Mumbai, along with Delhi, were the first two airports for which joint venture entities were created to operate the airports on a long term lease. Private sector companies hold a 74% share in the airport operator, with 26% being retained by the AAI.

After a lengthy selection process, the successful bidder for Mumbai Airport was a consortium led by GVK (a large infrastructure company based in South India) and Airports Company South Africa.

Phase 1 of the upgrade process, scheduled for completion by 2010, will see the construction of a new terminal, improvements to the existing facilities, an expanded cargo handling facility and a new access road. Capacity of the airport will be increased to 40 million passengers per annum.

Subsequent phases will require the construction of a parallel runway, however this will necessitate the removal of slums which have encroached on the airport perimeter, a politically sensitive issue. Due to land constraints, the expansion of the existing airport does face limitations which will require the development of a second airport in Mumbai to meet demand.

The government has identified a site in Navi Mumbai, one of the new developing areas of the city, for the proposed second airport, and has completed initial techno-feasibility studies for the facility. The airport will also be developed on a PPP basis. Expressions of interest are expected to be called in 2007, with a target for the airport to open by 2012.