Monday, October 17, 2022

Adani Group likely to shift a big airline to Navi Mumbai airport: Report

 New Delhi: Billionaire Gautam Adani-controlled Adani Group is actively considering a 200 per cent increase in the commercial area in airport, constructing multiplexes and Legoland theme parks in the city side. More importantly, it plans to shift one of the big airlines to Navi Mumbai airport in an earnest bid to decongest Mumbai airport and boost revenue from its eight airports.

At present, Adani Airport Holdings (AAHL), a group company of the ports-to-power conglomerate, manages airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram. Also, it is developing 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 the potential investors last week.

Mumbai airport is the second busiest airport in the country and there is further no scope for capacity expansion beyond 6 crore passengers per year as it is in the heart of the city, the financial daily, mentioned, citing one of the presentations. This means that there is effectively no new slot available for airlines at Mumbai airport.

The Adani Group presentation mentioned that the Mumbai airport had two major airlines with domestic and international airlines—IndiGo and Air India. One of these airlines may be shifted to Navi Mumbai International Airport so that the load on Mumbai International Airport (MIAL) can be reduced.

The airline will get the benefit of prime slots at Navi Mumbai airport. Also, the cost of moving the entire base from Mumbai to Navi Mumbai is also not high because shifting just spillover will result in an additional initial setup cost to the airline.

Currently, Mumbai airport operates 2,573 weekly flights, of which 919 are IndiGo and 390 Air India flights. Vistara and Go First are at number three and four with 364 and 243 flights, respectively, as per data from aviation analyst firm Sirium.

17/10/22 Economic Times

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