India’s Adani Group will focus on expanding its aviation business and plans to bid for more government-run airports when they come up for privatisation, Adani Airports’ chief executive said on Wednesday.
India is the world’s fastest-growing aviation market, with demand for air travel outstripping the supply of planes. Some major airports are already reaching full capacity even as airlines continue to order more planes.
“Our ambition is to do more airports in India,” said Arun Bansal, CEO of Adani Airports, adding that the government’s airport privatisation policy is publicly known, “and we intend to bid for that”.
Adani already owns and operates seven airports, including six that it won as part of the government’s first privatisation drive, and a new airport it is building in Navi Mumbai on the outskirts of India’s financial capital.
The government has plans to privatise 25 more airports under public-private partnership until 2025 and Bansal said the group would look at bidding “if the conditions are right”. The expansion plans come as billionaire Gautam Adani’s group tries to rebuild investor confidence after US short-seller Hindenburg Research accused it of stock manipulation and improper use of tax havens – charges the company has denied.
Hindenburg’s January 24 report eroded more than $100 billion in the value of the company’s shares.
Asked if the group’s challenges would affect airport expansion or investment plans, Bansal brushed aside concerns, saying it is pushing ahead and all its projects are on track. “Our strategy is simple - to create scale,” he said.
Published in The Express Tribune, March 24th, 2023.
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