DELHI

Delhi International Airport is India’s second busiest airport in terms of both international and domestic traffic. Until 2006 the airport was operated by the state-owned Airports Authority of India (AAI). As air traffic in India has accelerated in recent years, airport infrastructure has come under increasing pressure. Recognising that it could not fund the required investment to bring India’s airports to world class levels by itself, the government of India announced an upgrade and modernisation plan based on a public-private partnership (PPP) model. Delhi and Mumbai 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 controversial selection process, the successful bidder for Delhi Airport was a consortium led by GMR (a large infrastructure company based in South India) and Fraport (operator of Frankfurt Airport).

The new airport operator unveiled a Master Plan in December 2006 in which Phase 1 of the upgrade program will see the construction of a new terminal, a third runway with A380 capability and a metro rail connection to the city centre. Phase 1 is scheduled for completion by 2010, in time for the Commonwealth Games which will be held in the city that year, and will result in annual passenger capacity of 37 million. The airport is being designed with an eventual capacity of 100 million.