As the Indian aviation industry is growing exponentially, massive investments in this sector are needed. However, since the industry is still in the nascent stage, regulatory uncertainties can deter potential investors in this sector and lead to a situation where the required capacity is unavailable. This note discusses various regulatory business models across the world and a regulatory business model for Indian airports. The note also analyses various Indian public–private partnership (PPP) airports’ business model differences. This project evaluates the regulatory framework and its impact, especially on greenfield and brownfield airports requiring investments. This note explores the impact of the higher cost of equity on tariffs from a per-passenger-yield perspective and also explores the way to incentivise private investments in the airport sector. Overall, the note is helpful in understanding the business model of airports, tariff determination processes and key challenges faced by airports.