The Adani Group, one of the most celebrated global conglomerates, plans to increase its footprint in the airport business further. The company operates some of the major airports in the country and is also one of India’s largest private airport operators. Adani Airport Holdings, which is a subsidiary of the Adani Group, is responsible for operating the airports. The company has been relentlessly working towards the expansion and development of airports. It is also keen on adding more airports to its portfolio by participating in the various government tenders inviting bids for privatising over 25 airports in the country.
Government’s Plans for Airport Privatisation:
Officials from Adani Enterprises recently stated that 30 to 35 airports currently held by the state-owned airport authorities of India will be privatised by 2025, and the Adani Group plans to acquire a majority of these airports. By privatising the airport, the government will be able to ensure that airport operations take place smoothly. It will lead to enhanced financial gains in the private sector. The people can also be offered better services. As per Adani latest news, some of the major airports which will be privatised include Bhubaneswar, Chennai, Varanasi, and Amritsar. Other than that, small airports like Dharamshala, Gaya, and Jharsuguda will also be privatised.
Why Does the Adani Group Aim to Acquire the Airports?
By gaining power over the Indian airports, the Adani Group will be able to extend its hold over the country’s airport sector. It will also be able to earn extraordinary popularity for itself. AAHL is currently responsible for operating some of the major airports in Ahmedabad, Mangaluru, Trivandrum, Lucknow, Jaipur, and Guwahati. It bagged the tenders for these projects in 2019. However, its biggest asset is the Mumbai Airport. The firm took over control of the airport from the GVK Group in 2021. It is also working on operating the Navi Mumbai Airport, another extraordinary venture taken up by the Adani Group in its airport sector.
Now that the Mumbai Airport is almost saturated, AAHL will be opening the Navy Mumbai Airport pretty soon. The expected date of operations is the March quarter of FY25. This greenfield airport is again a part of the network planning project. It will reduce the load on the Mumbai Airport. The cargo traffic is also going to increase significantly. By becoming one of the country’s critical network players, the Adani Group will be able to acquire greater strength in terms of strategy development and route planning. The bundle of smaller airports, along with the major international airports, will offer attractive packages for the potential bidders out there.
What Does Saurabh Shah Have to Say in This Matter?
Saurabh Shah, the Deputy Chief Financial Officer of Adani Enterprises, has recently mentioned in the Adani latest news that the Adani Group is surely going to take up an interest in the ports that will be set for privatisation. The Adani Group plans to bid 100% on various projects in the airport sector. This will help the company to build an extensive network of airports. It will also be able to strengthen its hold over the airport sector and build an excellent reputation for itself.
The Recent Growth in The Airport Business:
With all the airports combined, the Adani Group currently controls 23% of India’s total passenger traffic. It is also planning on becoming a network player in the airport sector, allowing the group to offer seamless connectivity to customers across its various airports. The Adani Group’s airport business witnessed excellent revenue growth during the last quarter. There was a total growth of 35% year-on-year to INR 8,062 crore. The EBITDA grew by 45% year-on-year to INR 2437 crore during the financial year 2024. During that particular quarter itself, 10 new routes and 7 new airlines were added across the various operational airports. 18 new flights also started operating across the airports. The passenger movement at the airports the Adani Group runs increased 19 % year-on-year to reach 88.6 million during the March quarter.
Conclusion:
In this way, the Adani Group will continue to display rapid growth in its airport operations. With more airports getting privatised, some of the major airports in the country will come under the control of the Adani Group. This will ensure that the geographical boundaries are diminished and smooth air connectivity is maintained. Our country will also achieve excellent exposure on a global scale.