The airport was constructed during the British era and is spread over an area of 366 acres. It was served by Vayudoot between 1985 and 1994 and by VIF Airways in 1995. The Andhra Pradesh government signed a MoU worth Rs. 23 crore with the Airports Authority of India (AAI) in February 2007 for modernising the airport. Works on the new terminal building to accommodate 150 passengers and control tower were completed in 2011 at a cost of Rs 38 crore. The terminal was inaugurated on 16 May 2012. The AAI's plans to extend the existing runway from 1,749 metres to 3,125 metres to enable landing of aircraft like the Airbus A320 has met with resistance from local land-owners. Approximately 700 more acres would be needed for this expansion. Limited by runway length, airlines operate smaller 70 seat turbo-prop aircraft like the ATR-72 (Jet Airways)and the Q-400 (SpiceJet) into Rajahmundry. As of now, The government sanctioned about 80 crore rupees for its expansion.