Surat : The Adani Airport Holdings Ltd (AAHL), a wholly owned subsidiary of Adani Enterprises Ltd, has taken over the management control of Mumbai International Airport Limited (MIAL)—India’s second busiest airport by both passenger and cargo traffic– from the GVK Group following the MIAL Board Meeting on Tuesday.
The development came after AAHL received approvals from the Government of India, the City and Industrial Development Corporation (CIDCO) of Maharashtra and the Government of Maharashtra.
With this, AAHL is now India’s largest airport infrastructure company, accounting for 25% airport footfalls with eight airports in its management and development portfolio. With the addition of MIAL, AAHL will have a controlling stake of about 33% of India’s cargo traffic.
According to the International Air Transport Association (IATA), the global passenger traffic is set to recover to 88% of pre-Covid levels by 2022 and exceed pre-Covid levels in 2023 as the demand for air travel in India and rest of the world is expected to surge.
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.
Adani added, “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.”
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 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.