Adani Group owns seven operational airports that account for 23% of the total air traffic in India and control 50% of top domestic routes. Aeronautical operations such as aircraft landing, parking, cargo and ground handling will not be more than 15% of operating profit of Adani Airport Holdings (AAHL). AAHL is banking on the concept of aerotropolis on the lines of global peers such as Amsterdam Airport Schiphol, Incheon International Airport and Zurich Airport.
Designed around an airport, CSD is effectively a city inside a city. According to KPMG, non-aero spend per passenger in India is two to three times lower than that of foreign counterparts. CSD is referred to as a metropolitan region that extends well beyond the boundaries of the airport and is bordered by commercial, educational, office, entertainment, healthcare, and hospitality roads.
The Adanis seem to be more aggressive on the non-aero business vis-à-vis other players. London Heathrow generated 54% of its revenues from non-aerosourced sources last year. Analysts said GMR’s Hyderabad Airport’s non-Aero business contributed 61% to its Ebitda in FY22. ‘Our CSD businesses will be about 55-60% of our airport EbitDA,’ says Adani Enterprises CEO Rajesh Adatgi.
AAHL plans to make Mumbai, with a peak capacity of 60 million, an airline hub, followed by Ahmedabad as a regional hub connecting Bhuj, Kandla, Jamnagar and Bhavnagar airports. The company has more than 650 acres of real estate and a consumer base of more than 200 million, including a non-passenger base of 120 million.
AAHL has earmarked 25 AAI airports for monetisation till 2025. The government launched the National Monetisation Pipeline (NMP) for brownfield infrastructure assets of aggregate value of ?6 trillion. Bundling of smaller airports with major airports for scale offers an attractive package for potential bidders.
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