Adani Airport Holdings Ltd (AAHL), a unit of Adani Enterprises Ltd., on Tuesday took management control of the Chhatrapati Shivaji Maharaj International Airport(CSMIA) from the GVK Group. The control has been granted after approvals from the Union Government of Maharashtra and Maharashtra City and Industrial Development Corporation (CIDCO).
Adani Expansion strategy to pave way for seamless international travel
Adani Airport Holdings Limited (AAHL) takes management control of Mumbai International Airport from the GVK Group.#AdaniAirports #MumbaiAirport #CSMIA #GatewayToGoodness #AdaniEnterprises @CSMIA_Official
— Adani Group (@AdaniOnline) July 13, 2021
The Adani Group has about 74% stake in Mumbai's Chhatrapati Shivaji Maharaj International Airport as it strongly believes in a travel boom in a post-pandemic world. A majority of this stake, around 50.5%, has been brought from the GVK Group and the remaining 23.5%, have been acquired from minority partners including ACSA, and Bidvest Groups.
This hypothesis backed by IATA (International Air Transport Association), has estimated an 88% passenger traffic rise than that of the pre-COVID era by 2022. On these lines, the AAHL also expects the Mumbai airport traffic to boost by a compound 12% by FY22. The footfall is expected to further exceed in 2023, worldwide, added reports.
Spearheaded by industrial tycoon Gautam Adani of the AAHL, the company's airport expansion strategy has been devised to help converge the nation's Tier 1 cities with the Tier 2 and Tier 3 locations in a hub and cope model. The principal motive of this approach is to enable equalisation of India's urban-rural divide - facilitating seamless international travel. With this latest addition of CSMIA control, the AAHL controls over 33% of India's total air cargo traffic.
"We are delighted to take over management of the world-class Mumbai International Airport. We promise to make Mumbai proud. The Adani Group will build an airport ecosystem of the future for business, leisure and entertainment. We will create thousands of new local jobs.", Gautam Adani added in a tweet.
The Adani group has won competitive bids to run the airports at Jaipur, Ahmedabad, Guwahati, Lucknow, Mangalore and Thiruvananthapuram. However, it may be noted that it plans to back down from taking over the Jaipur, Guwahati and Thiruvananthapuram airports by six months as these are financially unviable assets, from the business point of view due to the pandemic.