Adani Group has an $11-billion aviation plan that doesn't include an airline
Adani Airports plans to bid for 11 airports that the government wants to lease to the private sector, Jeet Adani says.
The Ahmedabad-based Adani Group has a five-year, $11-billion expansion plan for its airports business but no plans to start an airline in the world's fastest growing aviation market.
What's the plan: The billionaire Gautam Adani-led conglomerate plans to bid for 11 airports that the Narendra Modi government wants to lease to the private sector, while incentivising building new ones.
- The government wants to have 350-400 airports by 2047 from 163 at present. Earlier this year, New Delhi outlined plans to lease out 11 airports, including those at Amritsar and Varanasi.
“We will be bidding for all (11) of them,” Jeet Adani, director at Adani Airports Holdings Ltd., told Reuters in an interview in Mumbai this week.
Why it matters: Adani's airport overdrive comes when India's aviation market has emerged as among the fastest growing in the world.
- About 17.4 crore passengers travelled from and within India by air in 2024, 10% more than a year ago, as per International Air Transport Association.
- Indian airlines have placed orders for more than 1,300 aircraft since 2023.
Adani Airports, but what about Airlines?
Jeet Adani said that the Adani Group has no plans to enter the airline business dominated by IndiGo and Air India, citing thin margins.
“You need to have a certain mindset to run an airline. I don't think we have that mindset,” he said. “Our comfort and our core competency is in creating hard assets on the ground, long gestation assets, running them quite efficiently.”
By The Numbers
- Adani Airports is largest operator in India by number of airports. The GMR Group, is the largest operator by number of passengers handled.
- Adani Airports manages seven airports in India. Navi Mumbai International Airport, the first facility it has built from scratch, will start operations on 25 December.
Adani Airports IPO Plans
According to Jeet Adani, there is no fixed timeline for a public listing. An Adani Airports IPO or a demerger would depend on achieving some milestones, including the business becoming cash positive.
Currently, Adani Airports is “largely” EBITDA positive, but due to the capital expenditure cycle, more cash needs to be deployed, he said.
When asked about a possible valuation for the business, Jeet Adani said that has not been set but the company will look at “comparable multiples” when deciding on a number.
