Adani Group Becomes India’s Largest Airport Infrastructure Company
Adani Group has taken over management of the Mumbai International Airport. This becomes crucial at a time when the aviation industry is at its all time low. It has taken over the reins from the GVK group that was initially looking after the international airport. With this takeover, the Adani Airport Holdings will now have control over 33% of India’s air cargo traffic.
It will also hold a 74percent stake in Mumbai’s Chhatrapati Shivaji Maharaj International Airport after having bought a stake from the GVK Group and from minority partners like Airports Company South Africa (ACSA), and Bidvest Group.
IATA (International Air Transport Association) estimates a huge jump in air travel one the economy completely opens up. An estimate growth of 88 percent is being seen in passenger traffic till 2023.
Speaking over the takeover of the airport facilities, Gautam Adani, Chairman of the Adani Group has said, “Our larger objective is to reinvent airports as ecosystems that drive local economic development and act as the nuclei around which we can catalyze 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.”
His endeavor includes an airport expansion strategy that intends to help converge India’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,” Adani added.
Mumbai International Airport Limited (MIAL) is India’s second busiest airport both in terms of passenger and cargo traffic. With eight airports under its management and development portfolio, AAHL is now India’s largest airport infrastructure company, accounting for 25 per cent airport footfalls.