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

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Case Details:

Case Code : PROM010
Case Length : 24 pages
Period : 2006-2010
Organization : GMR Group; Delhi International Airport Limited
Pub Date : 2011
Teaching Note :Available (Pages 6)
Countries : India
Industry : Infrastructure

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction cont...

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 runway⁷ and terminal 1D⁸ being opened up for commercial operation (Refer to Exhibit I for different terminal of Delhi

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airport). 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 Quality⁹ (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."¹⁰

Introduction - Next Page>>

6]Renovation of International terminals and the Haj terminal was completed on June 30, 2008, and October 29, 2008, respectively.

7] This was the third runway of the airport which started on September 25, 2008.

8] This terminal was inaugurated on February 26, 2009.

9]Air Service Quality (ASQ) is the initiative of Airport Council International. ASQ helps the airport to maintain and continuously improve the service provided to passengers.

10] "PM Inaugurates the Integrated T-3 Terminal of the Indira Gandhi International Airport," http://pib.nic.in, July 3, 2010.