Hassan airport, coming up at Bhuvanahalli near Hassan city, is being developed by the Karnataka State Industrial Infrastructure Development Corporation (KSIIDC) at an estimated cost of Rs 194 crore. Spread over 536 acres, the project includes a 2,200-meter runway and facilities designed to handle ATR-72 aircraft, aiming to boost regional connectivity and tourism to nearby pilgrimage centres like Shravanabelagola, Belur, and Halebidu.

The project was first mooted by the Central Public Works Department in 1960, with a land notification being issued in 1969, but there was no progress. It was later revived in 2006-2007 by former Prime Minister H D Deve Gowda in the interest of the region's farming sector. The district authorities had acquired 536 acres of land across the seven villages of Bhuvanahalli, Sankenahalli, Lakshmisagara, Thendihalli, Davalapura and G Milanahalli on the outskirts of the city in 2007 and handed it over to Jupiter Aviation. Farmers and land owners in Bhuvanahalli and six other villages in Tumkur district opposed the amount awarded by the district administration as compensation for the Hassan airport project, which is a joint venture between the Government of Karnataka and Jupiter Aviation Private Limited on a Build Own Operate Transfer (BOOT) model.

Meanwhile, the Karnataka Industrial Area Development Board (KIADB) needed an additional 200 acres for the project. KIADB claims that 254 acres of land in four parcels have already been notified for the airport project over 12 years.

At a meeting between the farmers and the district administration on 17 July 2018, the farmers said they would give up their land for the airport only if the airport authorities provide employment to the local people and pay Rs 2 crore per acre as compensation. The district officials, however, offered them a maximum compensation of Rs 32 lakh per acre. The farmers claimed that some qualified youths from the village wanted to apply for jobs at the airport but were denied entry by the airport authority.

When LCW approached Special Land Acquisition Officer Arun Kumar for comments on the issue, he said he would not be able to share any information since he is not the concerned officer anymore. LCW then tried to contact another Special Land Acquisition Officer, Suresh Kumar, who said he had recently joined the post and was not aware of the issue.

In June 2021, the Karnataka Cabinet formally approved the construction of the domestic airport at a revised investment of Rs 194 crore.

In September 2021, District Collector R Girish directed immediate marking work for the Hassan airport and stressed timely completion, while relocation of 66 of 68 electricity towers was underway. In September 2022, KSIIDC Chairman Shailendra K Beldale announced the project would be developed in two phases with a 2,200-meter runway under the UDAN scheme, but the airport soon became politically contentious. H D Revanna demanded revival of the full 960-acre plan, while MLA Preetham Gowda opposed facilities like a golf club and called for excess land to be returned to farmers. Out of 960 acres notified, 536 acres were acquired, 214 acres are government land, and 220 acres are yet to be acquired due to farmer resistance. As of 2023, Infrastructure Development Minister M B Patil reported 62.4% completion in Phase I and 12.14% in Phase II, with work ongoing on the runway, apron, and terminal.

On 12 August 2024, the Hassan district unit of Karnataka Prantha Raitha Sangha (KPRS) staged a protest in front of the Deputy Commissioner’s office, alleging that KIADB officials were forcibly taking over cultivators’ land in Lakshmisagara village despite their legal possession. The protesters demanded that the Revenue Department subdivide the land among the grantees and ensure KIADB does not interfere with their cultivation. On 18 January 2025, farmers in Boovanahalli protested against the construction of a compound at the proposed Hassan airport site, alleging that KIADB officials proceeded despite confusion over compensation between landowners and officials, which had led to a High Court injunction to halt construction, while over 100 police personnel were deployed to protect the commencement of the compound wall work.

On 29 January 2025, residents of Boovanahalli, Lakshmisagara, Dyavalapura, Tendihalli, and G Mylanahalli, who had surrendered their lands for the Hassan airport project, supported by the Karnataka Prantha Raitha Sangha (KPRS), staged a protest demanding job opportunities for their family members and the construction of a road around the facility to benefit surrounding villages.

While the project was scheduled to be completed by 30 April 2025, media reports indicate it may now be operational only by 2026.