GMR's Terminal 3 for Delhi Airport: A Successful Project Execution Model for Public-Private Partnership Initiatives?

Case Code: PROM010 Case Length: 24 pages Period: 2006-2010 Pub Date: 2011 Teaching Note: Available

Price: Rs.400 Organization: GMR Group, Delhi International Airport Limited Industry: Infrastructure Countries: India Themes: Project Management, Public-Private Partnership, Infrastructure

Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

On July 14, 2010, the first flight touched down at India's newly built Terminal 3 (T3) of Delhi airport, the swankiest and largest in the country, opening a new chapter in the history of the airport and the Indian Aviation Industry. It was around 4:40 pm (IST) when the first commercial flight, the Air India flight from John F Kennedy International Airport, New York, touched down on the runway to be greeted by water cannon salutes from both sides. The 220 passengers and 18 crew members of AI-102 flight were warmly welcomed by the airport senior officers and staff and treated as special guests. They posed for media cameras and received gifts and certificates for being the first group of passengers to arrive at T3. Sunil Gupta (Gupta), Director of an IT firm in New York, who was among the first passengers, said, "The old terminal was shabby and barely had basic facilities. This one looks good and is up to international standards".

Not too long ago, Delhi airport had been known for its poor management and poor passenger services. Underinvestment in airport infrastructure since independence was a major cause for concern. Lack of funds and the expertise to develop and maintain the growing airport infrastructure needs of the country forced the government to invite private players to participate in infrastructure development under Public Private Partnership (PPP). It was in January 2006, that a consortium led by the GMR Group won the bid to develop the airport. Very soon, the PPP initiative yielded results, with two terminals being renovated6 and one new runway and terminal 1D being opened up for commercial operation. However, revolutionary change, as the experts called it, came about when the T3 was inaugurated on July 3, 2010. At the inauguration of T3, Manmohan Singh (Singh), Prime Minister of India, said, "The Delhi airport has improved its rank sharply in terms of Air Service Quality (ASQ) performance, from 101 in 2007 to 21 in 2010. After the opening of this new terminal we are hopeful that the airport will shortly rank within the first 10 airports of the world."...

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