{"id":63931,"date":"2024-05-23T13:05:57","date_gmt":"2024-05-23T07:35:57","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=63931"},"modified":"2024-05-23T13:06:02","modified_gmt":"2024-05-23T07:36:02","slug":"adani-group-eyes-25-private-airports","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2024\/05\/23\/adani-group-eyes-25-private-airports\/","title":{"rendered":"Adani Group Now Eyes 25 Private Airports that AAI want to Privatize"},"content":{"rendered":"\n

MUMBAI-<\/strong> Five years after securing the bid to operate six international airports and becoming the largest private airport operator in the country, the diversified Adani Group<\/a> is aiming to further expand its footprint in the airport sector.<\/p>\n\n\n\n

Adani Airport Holdings (AAHL) is eager to add more airports to its portfolio by participating in government tenders for the privatization of at least 25 airports.<\/p>\n\n\n\n

\"Five
Photo: Mangaluru Airport<\/figcaption><\/figure>\n\n\n\n

Adani Group Eyes More Airports<\/h2>\n\n\n\n

According to an Adani Enterprises presentation, 30-35 airports currently managed by the state-owned Airports Authority of India (AAI) are slated for privatization by 2025.<\/p>\n\n\n\n

AAHL currently operates airports in Trivandrum (TRV), Mangaluru (IXE), Ahmedabad (AMD)<\/a>, Jaipur (JAI), Lucknow (LKO), and Guwahati (GAU), acquired in early 2019.<\/p>\n\n\n\n

Its most significant asset is the Mumbai airport<\/a>, which it took over from the GVK group in 2021. Combined, AAHL airports handle 23% of India\u2019s total passenger traffic.<\/p>\n\n\n\n

The group is now aiming to become a network player, facilitating seamless connectivity between airports for improved route planning.<\/p>\n\n\n\n

\"Adani
Photo: File: Busy apron of Trivandrum International airport.jpg – Wikimedia Commons<\/figcaption><\/figure>\n\n\n\n

Bidding for More Airports<\/h2>\n\n\n\n

Saurabh Shah, Deputy Chief Financial Officer of Adani Enterprises (AEL), stated, \u201cWe will consider airports that come up for privatization, likely post-elections. We are committed to bidding for projects that align with our core network development strategy.\u201d<\/p>\n\n\n\n

With the Mumbai airport nearing capacity, AAHL plans to open the Navi Mumbai Airport (NMI)<\/a> in the March quarter of FY25. This greenfield airport is part of the company’s strategy to alleviate congestion at the Mumbai airport.<\/p>\n\n\n\n

The network planning aims to enhance not only passenger traffic but also the growing cargo traffic.<\/p>\n\n\n\n

“We want to ensure that we establish ourselves as a network player, which significantly strengthens our route planning and strategic development,\u201d Shah stated during the post-earnings call.<\/p>\n\n\n\n

The bundling of smaller airports with major ones offers an attractive package for potential bidders, according to AEL\u2019s presentation.<\/p>\n\n\n\n

\"AAI
Photo: Chennai Airport (MAA) Twitter<\/figcaption><\/figure>\n\n\n\n

Airports that will be Privatize<\/h2>\n\n\n\n

Major airports slated for privatization include Chennai (MAA)<\/a>, Bhubaneswar (BBI), Amritsar (ATQ), and Varanasi (VNS), along with smaller airports like Gaya, Dharamsala, and Jharsuguda.<\/p>\n\n\n\n

Adani\u2019s airport business saw a 35% year-on-year (y-o-y) revenue growth to Rs 8,062 crore, while EBITDA increased by 45% y-o-y to Rs 2,437 crore during FY24.<\/p>\n\n\n\n

In the March quarter of FY24, AAHL added 10 new routes, seven new airlines, and 18 new flights across its seven operational airports. Passenger traffic at its airports grew by 19% y-o-y to 88.6 million during the same quarter.<\/p>\n\n\n\n

Currently, AAHL’s primary revenue source is from aero operations. However, the company plans to shift this focus to non-aero operations in the coming years. Except for Mumbai, approximately 75% of AAHL’s revenues come from aero operations and 25% from non-aero operations. Mumbai airport has a more balanced split, with about 50% of each.<\/p>\n\n\n\n

“We are continuously working to shift that ratio towards 75% non-aero and 25% aero, aligning with international standards. This is how we plan to grow the business. Over the next 2 to 3 years, you will see a significant change in the ratio from aero to non-aero,” Shah stated.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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Puri International Airport: Adani, Fairfax, and GMR Places New Bids<\/a><\/blockquote>