The existing airport at Chandigarh is used for private and defence flights. The runway is being extended to upgrade it to international standards.

All three sides had signed a memorandum of understanding January 2009 for the development of the international airport. The airport project was to cost Rs.1,000 crore (10 billion).

The central government (ministry of civil aviation) has a 51 percent equity share while both states have a 24.5 percent share each.

The Punjab assembly has already forwarded a resolution to the central government for naming the airport as 'Shaheed-e-Azam Sardar Bhagat Singh International Airport'.