On Tuesday, Adani Group announced that it has taken over the management of Mumbai’s Chhatrapati Shivaji Maharaj International Airport from the GVK group. Post the stake purchase transaction, Adani Group will have 74% stake in Mumbai Airport with 50.5% being bought from GVK Group and 23.5% bought from minority partners including Airports Company South Africa and Bidvest Group. In a statement, Adani said that the company’s larger objective is to re-invent airports as ecosystems that drive local economic development as well as act as the nuclei around which it can catalyze aviation-linked businesses.
According to Adani, these include metropolitan developments that span entertainment facilities, aviation-dependent industries, smart city developments, e-commerce and logistics capabilities as well as other innovative business concepts. The International Airport of Mumbai is India’s second busiest airport (after IGI Airport in Delhi) by both passenger as well as cargo traffic. According to the company, Adani Airport Holdings is now the nation’s largest airport infrastructure company with eight airports in its management and development portfolio, accounting for 25% of airport footfalls. It further said with the addition of MIAL, now AAHL will also control 33% of the country’s air cargo traffic.
The company believes that while the world navigates its way out of an unprecedented crisis, in India and the rest of the world, post-pandemic demand for air travel is likely to surge. It is expected by the International Air Transport Association (IATA) that the global passenger traffic will recover to 88% of pre-COVID levels by the year 2022 and exceed pre-COVID levels in the year 2023, the company stated.
According to the company, with India becoming the world’s third-largest aviation market by the year 2024, the addition of Mumbai’s CSMI Airport to the Adani Group’s existing portfolio, and thereafter the greenfield Navi Mumbai International Airport’s operationalization, provides a transformational aviation platform enabling the group to interlink its B2B and B2C business. Besides, it will also allow the group to create several strategic adjacencies for its other B2B businesses, Adani added.