Adani Group Likely To Shift Major Airline To Navi Mumbai Airport
October 17, 2022: The Adani Group, controlled by billionaire Gautam Adani, is actively considering a 200 percent increase in the airport’s commercial area, building multiplexes and Legoland theme parks on the city side.
More importantly, it plans to relocate one of the major airlines to Navi Mumbai Airport in a serious bid to decongest Mumbai Airport and increase revenue from its eight airports.
Today, Adani Airport Holdings (AAHL), a group company of the ports-to-power conglomerate, manages airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram. Additionally, it is developing the Navi Mumbai airport, which is likely to be operational by 2024.
Citing people familiar with the development, Business Standard reported that Adani Group officials gave two presentations on the airport plans to potential investors last week.
Mumbai airport is the second busiest airport in the country and there is no scope for capacity expansion beyond Rs 6 crore of passengers per year as it is located in the heart of the city, the financial daily mentioned. citing one of the presentations. This means that there is effectively no new space available to airlines at Mumbai airport.
The Adani Group presentation mentioned that Mumbai airport had two main carriers with domestic and international carriers: IndiGo and Air India.
One of these airlines may transfer to Navi Mumbai International Airport to reduce the load at Mumbai International Airport (MIAL).
The airline will get the benefit of the best slots at Navi Mumbai airport. Also, the cost of moving the entire base from Mumbai to Navi Mumbai is also not high because changing only indirect effects will result in additional initial setup cost for the airline.
Mumbai Airport currently operates 2,573 weekly flights, of which 919 are IndiGo flights and 390 are Air India flights.
Vistara and Go First are at number three and four with 364 and 243 flights, respectively, according to data from aviation analyst firm Sirium.
In the second presentation, the group mentioned that it plans to increase the passenger capacity from Rs 3.1 crore to Rs 7.5 crore at the seven operating airports by 2027.
Also, in the first phase, Navi Mumbai airport will be operational by December 2024 and will have a capacity of 2 million passengers.
The Ahmedabad-based conglomerate wants to shift focus to “underserved” international routes, increase the proportion of wide-body aircraft at its airports and woo airlines with monetary and non-monetary benefits. It also plans to develop the Mumbai airport as a transit hub on the Dubai airport lines.
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