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Adani Airport becomes the largest airport company; caters 10% of India's traffic

Forum Gandhi Mumbai | Updated on May 05, 2021

The company has taken a ₹4,197 crore long-term debt in FY21

Adani Airports Holding said that it has now become the ‘Largest Indian airport platform’ by catering to at least 10 per cent of India’s air passenger traffic. It has reached over 200 million consumer base in FY 2020.

This includes a non-passenger customer base of 120 million with a breakup of 80 million ‘Meet and Greeters’ and 40 million ‘City Side’ customers.

To reach this goal, Adani Airports has taken a ₹4,197 crore long-term debt in FY21.

Adani Airports has won bids for six airports. It also took over Mangaluru, Lucknow and Ahmedabad Airports in Q3 FY21 and operations of Mumbai International Airports Ltd (MIAL) by acquiring a 23.50 per cent stake in Q4 FY21 from ACSA and Bidvest.

The Gautam Adani-owned company also signed concession agreements for Guwahati, Jaipur and Thiruvananthapuram Airports on January 19. Together it operates, manages and develops eight airports in the country.

Adani airports has a mix of airports at metro cities as well as regional networks which include airports like Jaipur, Ahmedabad, Guwahati, Lucknow, Mangaluru and Thiruvananthapuram. Together, in FY20, these airports handled 79 million passengers including 19 million passengers.

On Wednesday, Gautam Adani, Chairman Adani Group, said that his company is true to the philosophy of ‘atmanirbharta’ in every business that Adani Enterprises Limited incubates with the company entering into roads, water, airports and data centres augurs well for the Adani Group and its shareholders.

An airports analyst BusinessLine spoke to said that: “The company is aiming at increasing its non-aeronautical fee base, for this, it is making sure that it can upgrade the airports in such a way which can accommodate more and more people.”

The company disclosed that for the fiscal it had total debt of ₹10,231 crore out of which, for the airports segment, it had a long-term debt of Rs 4,197 crore.

“While this is a huge amount, it is a long-term debt, and it takes a huge amount to manage, operate and develop airports. It is, however, the Government’s responsibility to keep a track that the impact of the debt does not translate into charging higher fees from airlines, and shops which in turn impact the customers,” said an analyst.

Published on May 05, 2021

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