Adani group bags lease rights for six non-metro airports

Adani group is all set to bag the lease rights for the operation of six non-metro airports in the country as soon as the new Modi government commences its term in the office. The Adani group has been a successful bidder in the applications invited by the Airports Authority of India (AAI).

AAI had invited bids for the operation of its airports, air terminals and other infrastructure where Adani emerged as the highest bidder.

AAI had sought bids for operation, management as well as upgradation and development of Ahmedabad, Guwahati, Jaipur, Lucknow, Mangaluru and Thiruvananthapuram airports on 50 years lease

The highest bidder is selected on the basis of the steepest per-passenger fee that the company will pay to the AAI monthly for 50 years. Like the previous aggressive bidding for national airports the Adani claimed the contract for the six airports by quoting a per quoting a per passenger (domestic) fee of ₹177 for the Ahmedabad airport, where the Group is based, ₹174 for Jaipur, ₹171 for Lucknow, ₹168 for Thiruvananthapuram, ₹115 for Mangaluru and ₹160 for Guwahati.

The final seal could not be put on the contract in wake of general elections. The decision will be made as soon as the new government takes over the office. AAI is estimated to earn around ₹525-575 crore annually as per rates quoted by Adani. The rates are dynamic and will rise as per traffic growth.

The rate for international passengers will be twice that of domestic passengers. Adani is vying for top spots in the aviation operation business. Adani’s entry will increase the number of players in the country’s airport business currently dominated by GMR, GVK, and the state-run AAI.

Sidharath Kapur has been hired as CEO of Adani airport business who till latterly was the executive director of GMR group’s airport business.

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