The GVK Group, which built the “peacock” style Terminal 2 at Chhatrapati Shivaji Maharaj International Airport (CSMIA), has exited MIAL with Adani Airport Holdings Ltd (AAHL), a wholly owned subsidiary of Adani Enterprises, acquiring its entire 50.5% stake along with the 23.5% stake in MIAL held by two foreign firms.
Airports Authority of India holds the remaining 26%.
AAHL will begin the construction of the Navi Mumbai International Airport (NMIA) next month and complete the financial closure in the next 90 days. This new international airport will be commissioned in 2024, the infra major says.
In a tweet, Adani Group chairman Gautam Adani said: “We are delighted to take over management of the world class Mumbai International Airport. We promise to make Mumbai proud. The Adani Group will build an airport ecosystem of the future for business, leisure and entertainment. We will create thousands of new local jobs.”
We are delighted to take over management of the world class Mumbai International Airport. We promise to make Mumbai… https://t.co/OUgcJGmNhq
— Gautam Adani (@gautam_adani) 1626187280000
The Adani Group is now India’s biggest airport operator with eight airports in its fold.
While Mumbai is India’s second busiest airport, AAHL — “India’s largest airport infrastructure company” — now handles almost a quarter of India’s air traffic and “will now also control 33% of India’s air cargo traffic,” the company said in a statement.
It took over MIAL from the GVK Group following a board meeting on Tuesday and after getting all required approvals received from the Centre and state governments and the City and Industrial Development Corporation (CIDCO) of Maharashtra.
“Our larger objective is to reinvent airports as ecosystems that drive local economic development and act as the nuclei around which we can catalyse aviation-linked businesses. These include metropolitan developments that span entertainment facilities, e- commerce and logistics capabilities, aviation dependent industries, smart city developments, and other innovative business concepts,” said Gautam Adani.
“Our airport expansion strategy is intended to help converge our nation’s Tier 1 cities with the Tier 2 and Tier 3 cities in a hub and spoke model. This is fundamental to enabling a greater equalisation of India’s urban–rural divide, as well as making international travel seamless and smooth. I believe that the economic value that cities create will be maximised around airports and the cities of tomorrow will be built with the airport as the focal point. This is a fundamental lever for modern world development and the rapid build-out of our airport infrastructure will create multiple employment structures that generate thousands of new job opportunities,” said Adani, one of South Asia’s richest men and an infra tycoon.
The Adani Group is betting big on its seven functional airports and the upcoming one at Navi Mumbai with India expected to be the world’s third largest aviation market by 2024. This, it says, “provides a transformational aviation platform allowing the Adani Group to interlink its B2B and B2C business as well as create several strategic adjacencies for the Group’s other B2B businesses.”
At 12% annual growth, AAHL expects its share of passenger traffic to grow from 8 crore in FY 20 to 10 crore in FY 22.
“With management control of MIAL, AAHL is poised to join the league of the world’s leading airport operators that cater to 10 crore plus passengers and 20 crore non-fliers in a year, presenting a massive 30 crore plus strong consumer platform,” the company says.
AAHL has won the mandate to operate six AAI airports – Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram – for a period of 50 years. Of them, it took over Ahmedabad, Lucknow and Mangaluru last year.