Adani Group takes management control of Mumbai International Airport from GVK Group
Mumbai, July 13, 2021
Adani Airport Holdings Ltd (AAHL), a wholly owned subsidiary of the Adani Enterprises Ltd, today took over the management control of Mumbai International Airport Limited (MIAL) from the GVK Group.
This followed a meeting of the MIAL Board earlier today, a press release from the company said.
It also follows approvals received from the Government of India, the City and Industrial Development Corporation (CIDCO) of Maharashtra, and the Government of Maharashtra, the release said.
Adani Enterprises Ltd is the flagship company of the Ahmedabad-based business conglomerate Adani Group, headed by Gautam Adani.
MIAL is India’s second busiest airport by both passenger and cargo traffic.
With eight airports in its management and development portfolio, AAHL is now India's largest airport infrastructure company, accounting for 25% airport footfalls. With the addition of MIAL, AAHL will now also control 33% of India’s air cargo traffic, the release said.
"While the world navigates its way out of an unprecedented crisis, post-pandemic demand for air travel in India and the rest of the world is expected to surge. The International Air Transport Association expects global passenger traffic to recover to 88% of pre-COVID levels by 2022 and exceed pre-COVID levels in 2023," it said.
"With India becoming to be the world's third largest aviation market by 2024, the addition of the Mumbai International Airport to the Adani Group’s existing portfolio of six airports, and thereafter the operationalization of the greenfield Navi Mumbai International Airport Limited (NMIAL) 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," the release said.
AAHL will begin the construction of the Navi Mumbai International Airport next month and complete the financial closure in the next 90 days. This new international airport will be commissioned in 2024.
“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, Chairman of the Adani Group.
"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 equalization 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 maximized 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," he said.
At 12% CAGR, AAHL expects its share of passenger traffic to grow from 80 million in FY 20 to 100 million in FY 22.
With management control of Mumbai International Airport Ltd (MIAL), AAHL is poised to join the league of the world's leading airport operators that cater to 100 million-plus passengers and 200 million non-fliers in a year, presenting a massive 300 million+ strong consumer platform, the release added.