Chennai, Sept 2026 : The Tamil Nadu government has proposed replacing the Airports Authority of India (AAI) as the operator of Chennai airport, arguing that the facility needs more efficient management and globally competitive infrastructure to support the state’s expanding industrial and investment needs.
Chief Minister C. Joseph Vijay reportedly raised the proposal in a letter sent to Prime Minister Narendra Modi in August, stressing the need for world-class airport infrastructure and improved management standards as Tamil Nadu seeks to attract greater domestic and international investment.
According to reports, the Chief Minister identified passenger handling, aircraft movements and cargo capacity as key areas requiring immediate improvement at Chennai airport. The state government believes that addressing these areas is essential to cope with rising aviation demand and strengthen Chennai’s position as an investment and business destination.
The proposal would involve changing the existing management arrangement under AAI, with the state understood to be considering an alternative operator and the possibility of private-sector participation.
The move comes after the Tamil Nadu government dropped plans for the proposed greenfield airport at Parandur in Kancheepuram district. Following the decision, the modernisation and expansion of the existing Chennai airport has assumed greater importance in the state’s infrastructure planning.
State officials have emphasised the need for a high-quality international aviation hub capable of supporting Tamil Nadu’s manufacturing, trade, tourism and logistics sectors. Improvements in passenger services, flight-handling capacity and cargo infrastructure are being viewed as important components of the state’s broader economic development strategy.
However, the proposal has drawn opposition from the Communist Party of India (CPI), which has urged the Tamil Nadu government to withdraw the plan.
The CPI has described the proposed change in management as a step towards privatisation of an important public asset. The party argued that shortcomings at Chennai airport should instead be addressed by strengthening passenger amenities, improving flight operations, expanding cargo-handling facilities and upgrading road connectivity.
The party maintained that transferring the airport’s management to a private operator would not be the appropriate solution.
Highlighting AAI’s financial performance, the CPI said the public-sector airport operator recorded a net profit of Rs 6,522 crore during 2025-26. It also claimed that Chennai airport generated a profit of around Rs 492.48 crore during 2024-25.
The CPI argued that the airport should continue under public-sector control, particularly after the proposed Parandur project was dropped.
It called on both the Centre and Tamil Nadu governments to modernise and expand Chennai airport under AAI management while ensuring that revenue generated by the facility continues to remain a public resource.
The proposal is expected to trigger further discussion over the future management, expansion and modernisation of Chennai airport.
