Spain's council of ministers has authorised the sale of a 90.05% stake in both Madrid Barajas and Barcelona El Prat airports.
It has also given its approval for up to 49% of Aena Aeropuertos, the new holding company established to move the country's airports towards privatisation, to be sold off.
Aena Aeropuertos will maintain the remaining 9.95% stakes in Madrid and Barcelona airports.
The management contracts for Madrid and Barcelona are for 20 years and can be extended by a further five years, said Aena.
The Spanish government expects the sale of Madrid Barajas to raise €3.7 billion ($5.2 billion) and the sale of Barcelona El Prat to raise €1.6 billion. The successful bidders will have to pay an annual fee worth 20% of revenue for the airports.
For Madrid that will equate to €150 million in 2012, while the fee for Barcelona will be €80 million.
The tenders for Madrid and Barcelona will open on 30 July and are expected to conclude at the end of November.
Source: Air Transport Intelligence news