MUMBAI- Adani Airports Holdings (AAHL), India’s second-largest airport operator, has expressed interest in raising its stake in Mumbai International Airport (MIAL) beyond the current 74 percent. The remaining 26 percent is currently held by the Airports Authority of India (AAI).
In August 2020, the Adani Group acquired a majority stake in the airport from the GVK Group, solidifying its position in the aviation sector.
Adani to Increase Mumbai Airport Stake
Mumbai Airport ranks as the country’s second-largest airport in terms of passengers served. Subsequently, it is second only to Delhi’s Indira Gandhi International Airport.
According to the annual report of Adani Enterprises, a statement in the segmental analysis of the airports business reveals, “AAHL is keen on bidding for all airports the government intends to privatize. Further, it will look to acquire a minority stake of the government in the Mumbai airport.”
However, Adani Group’s intention to acquire the minority stake held by AAI in MIAL to materialize depends on the government’s implementation of a previously proposed plan to sell AAI’s residual stake in public-private partnership airports.
This includes Delhi, Mumbai, Bengaluru, and Hyderabad. This plan is part of the government’s national monetization pipeline.
Sources have indicated that the government had initially put forth a plan in 2021 to sell its remaining stake in the four airports but later decided to put it on hold. The proposal will ultimately require the approval of the Union Cabinet.
As part of its strategy to expand its presence in the airport sector, Adani Group has expressed its eagerness to bid for all upcoming privatized airports in the country.
In addition to pursuing a higher stake in Mumbai International Airport, Adani Group aims to acquire additional airports under the government’s privatization agenda.
With its ambitious plans, the group seeks to solidify its position as a key player in India’s aviation industry.
As the Adani Group sets its sights on increasing its stake in Mumbai International Airport, it is contingent upon the government’s decision to proceed with the proposal to sell AAI’s residual stake in public-private partnership airports.
The outcome of this proposal will determine the future trajectory of airport ownership in India and potentially pave the way for Adani Group to strengthen its foothold in the aviation sector further.
Tata or Adani Might Takeover Kannur Airport
Kannur International Airport Limited (KIAL) employees have endured a two-month delay in receiving their salaries. Subsequently, due to the challenges faced by the airport.
Currently, only a limited number of international flights are permitted to operate from Kannur. Further leading to reduced passenger traffic. Moreover, domestic airlines operating at the airport have increased their fare prices. Additionally, impacting passenger numbers.
Air India Express (IX) and IndiGo (6E) are the only airlines providing services at Kannur Airport. Further, the initial loan taken for the airport’s construction amounted to ₹2,350 crores. But it has now escalated to ₹1,100 crores, including accumulated interest.
Additionally, the loan repayment period has already expired. Further, adding to the financial strain faced by the airport.
In a bid to overcome financial challenges and ensure the sustainable growth of Kannur Airport, the management is actively exploring privatization options.
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