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AAI Plans to Invest ₹17,000 Crore in Airspace Capacity Expansion

Written by: Team Angel OneUpdated on: 22 Nov 2025, 6:24 pm IST
AAI plans a ₹17,000 crore upgrade across 65 airports to expand India’s airspace capacity by 2029 through new ATC towers, upgrades and training.
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India’s air traffic has been rising steadily, and the Airports Authority of India (AAI) is preparing to increase airspace capacity rather than only expand airports on the ground. As per CNBCTV-18, AAI has planned an investment of ₹15,000-17,000 crore to upgrade air navigation services and air traffic control systems. The focus is on handling more aircraft within the same airspace. 

65 Airports Included in the Plan 

The project covers 65 airports, with work scheduled to finish by 2029. Around 60% of the spending will go into civil construction, mainly control towers, while 40% is set aside for technology, including automation and navigation tools. These upgrades are to make flight movement smoother without adding new runways. 

New Towers at Upcoming High-Traffic Airports 

4 new air traffic control (ATC) towers will be built at Bhogapuram, Navi Mumbai, Dholera and Jewar. These locations are expected to see rapid growth as new airport facilities become operational. The towers will be planned alongside  systems. 

Different Levels of Upgrades 

The scale of work will vary depending on traffic: 

  • 13 busy airports with over 100 aircraft movements a day: Five will get completely rebuilt towers; eight will receive major technology upgrades.
  • 22 airports will have existing towers revamped and fitted with new systems.
  • 26 airports will keep their current towers but will receive upgraded air navigation equipment. 

Closing the Movement Gap 

Busy Indian airports currently manage about 44-46 aircraft movements per hour, while some global hubs handle 56-57 per hour. AAI plans to improve automation, sequencing, and spacing between aircraft to increase capacity within the same skies. This is meant to raise throughput without expanding physical airspace. 

Training Capacity will be Expanded 

AAI runs training centres in Prayagraj, Hyderabad and Gondia. The Prayagraj facility will be expanded with simulators, radar systems and new buildings, allowing more controllers to be trained for the upgraded network. 

Read More: Karnataka Unveils Rs 445 Crore IT Policy to Boost Tech Hubs! 

Conclusion  

The pace of progress will depend on how quickly navigation and surveillance systems are procured. Any delay in sourcing equipment could affect the 2029 completion target, along with the timely deployment of newly trained controllers. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Nov 22, 2025, 12:51 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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