Adani Airport Holdings (AAHL) will invest more than Rs 20,000 crore in the first phase of developing airport cities across six airports as it looks to turn its aviation assets into integrated commercial and urban hubs, diversifying revenues beyond the core airport business.
The development programme, spread over 655 acres in Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati, will be executed through its wholly-owned subsidiary Adani Airport City (AACL). The first phase will see the development of around 22 million sq ft of commercial real estate comprising hotels, office spaces, retail, entertainment, convention centres and other lifestyle infrastructure. Nearly 70% of the investment will be directed towards Mumbai and Navi Mumbai, where the group has around 440 acres of land, underscoring the strategic importance of the Mumbai Metropolitan Region in its airport-led development plans.
The company said the projects are being designed as integrated, walkable districts connected to airports, Metro networks and city transport systems, following the airport city model adopted at global hubs such as Singapore Changi, Dubai International, Amsterdam Schiphol and Seoul’s Incheon airports. “Around the world, the most successful airport districts have become centres of commerce, tourism and urban growth. As India’s aviation market expands, airports have an opportunity to create value far beyond aviation,” Jeet Adani, director, AAHL, said. He added that the developments would generate investment, employment and long-term economic activity around the airports while improving passenger experience.
As part of the initiative, AACL has signed hotel management agreements with IHG Hotels & Resorts to develop five premium and luxury hotels, including the debut of the Kimpton brand in India, and is in discussions with domestic and global partners across hospitality, food and beverage, retail and entertainment. The company said all Airport City projects have received LEED Gold pre-certification from the US Green Building Council, reflecting their focus on sustainable and energy-efficient urban development. AAHL, India’s largest private airport operator, manages eight airports, including Mumbai and the upcoming Navi Mumbai International Airport, and sees airport cities as a key pillar of its long-term growth strategy.