Bengaluru Airport Earns AAA Credit Rating, Sets Sights on Major Expansion
Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport (KIA), has achieved the prestigious AAA credit rating from ICRA Ltd, India Ratings and Research Pvt Ltd, and Crisil Ratings Ltd. This top-tier rating underscores KIA’s robust financial health, signifying minimal credit risk and the highest degree of financial safety.
KIA, recognized as India’s third-largest airport and South India’s largest, boasts an annual passenger handling capacity of 51.5 million. The AAA rating reflects BIAL’s strong market position, sustained passenger growth, and increasing revenue streams. Passenger traffic is projected to rise by 10–11% in FY2025, reaching approximately 41–42 million passengers compared to 37.5 million in FY2024. Simultaneously, BIAL’s operating income is expected to grow by 20%, driven by expansion and revenue from both aeronautical and non-aeronautical services.
A long-term concession agreement extending until 2068 ensures BIAL’s financial stability. Its strategic ownership structure, featuring a 64% stake by Fairfax Group, 10% by Siemens, and 13% each by the Airports Authority of India and the Karnataka government, bolsters its operational strength.
To accommodate rising demand, BIAL has unveiled a ₹16,000-crore investment plan for FY2025-26, focusing on expanding Terminal 2, infrastructure upgrades, and additional projects. This ambitious initiative aims to boost KIA’s passenger handling capacity to 80 million annually, cementing its role as a key player in India’s aviation sector.
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