TravelBiz Monitor


Thursday, 04 July, 2019, 09 : 45 AM [IST]
Cabinet approves leasing out of 3 airports under AAI to Adani Group

As per The Telegraph, the Cabinet on Wednesday approved billionaire Gautam Adani’s foray into the operation, management and development of the airports of Lucknow, Ahmedabad and Mangalore under a public-private partnership model. The Adani Group had won the bids to operate six airports for a period of 50 years. The Cabinet will consider approvals for three other airports later this month. The firm had also won the bids to operate the Jaipur, Guwahati and Thiruvananthapuram airports, which are owned by the AAI. The AAI chose the winner on the basis of “per-passenger fee” offered by the bidders.

The per-passenger fee would be paid by the Adani Group to the AAI. The Adani group had quoted a per passenger fee of INR 174 for the Jaipur airport, INR 177 for Ahmedabad, INR 115 for Mangalore, INR 171 for Lucknow, INR 160 for Guwahati and INR 168 for the Thiruvananthapuram airport. The bidding this time around was different as it allowed firms without experience to bid and the winner was selected based on per passenger fee compared with the revenue sharing model adopted earlier. Analysts said the entry of Adani into the airport sector will mark a new era of competition in the sector which till now has been dominated by two companies GMR and GVK Group.

The government had allowed companies without any prior experience to bid for the projects to perhaps break the duopoly. As of now, Delhi, Mumbai, Hyderabad, Bengaluru and Kochi are the major private-run airports in the country. An official release said the public-private partnership projects “will bring efficiency in delivery, expertise, enterprise and professionalism apart from harnessing investments in the public sector”. (Source: The Telegraph)