The airport was constructed during the British era and is spread over an area of 366 acres (148 ha). It was served by Vayudoot between 1985 and 1994 and by VIF Airways in 1995. The Andhra Pradesh government signed an MoU worth ₹23 crore (US$3.4 million) 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 a control tower were completed in 2011 at a cost of ₹38 crore (US$5.6 million). The terminal was inaugurated on 16 May 2012. The AAI is extending the existing runway from 1,749 metres (5,738 ft) to 3,125 metres (10,253 ft) to enable landing of aircraft like the Airbus A320 , Airbus A321 . Approximately, 800 acres have been acquired 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.