Adani Group Begins Airport Takeover With Mangaluru, Lucknow

Privatisation AAI officials handing over the signed documents for Mangaluru Airport to Adani Group officials
File photograph of AAI officials handing over the signed documents for Mangaluru Airport to Adani Group officials. Source: AAI

The Airports Authority of India (AAI) has started the process of handing over select airports to the Adani Group on lease for a period of 50 years as agreed with a 3-month hand-holding process included.

On Sunday midnight, AAI handed over the Lucknow airport. This follows the handing over of the Mangaluru airport to the group on October 30 midnight. “Shri A.K Sharma, APD (Airport Director), Lucknow exchanged symbolic key in accordance with concession agreement & future development,” AAI said in a Tweet.

AAI had signed concession agreements with the Adani group on February 14 for operations, management and development of the Mangaluru, Lucknow and Ahmedabad airports.

On October 22, the AAI said in a press release that the Adani group would be taking over the airports at Mangaluru, Lucknow and Ahmedabad by October 31, November 2 and November 11, respectively.

The concession agreements for the other three airports — Jaipur, Guwahati and Thiruvananthapuram — were signed between both the parties in September.

In July 2019, the Union Cabinet gave its approval to the proposal of leasing out these three airports to the Ahmedabad-based Adani Group. On 19 August, the Cabinet gave approval to a proposal for leasing out the other three airports to the group.

According to the press release, the Ministry of Civil Aviation signed three MoUs with Adani Ahmedabad International Airport Limited, Adani Lucknow International Airport Limited and Adani Mangaluru International Airport Limited.

Officials said that the Adani Group had also moved an application proposal to the Ministry of Civil Aviation and the Airports Authority of India (AAI) seeking approvals to take over Mumbai International Airport Ltd (MIAL).

After the complete share transfer of MIAL from GVK Airports Holding, Adani will be the largest stakeholder in MIAL. This conversion would see Adani Group getting the 50.5 per cent stake of GVK Group, and along with that, it will also acquire 23.5 per cent of minority partners, ACSA, and Bidvest Group. The remaining 26 per cent will stay with AAI.

Previous articleJet Airways Stock Is Among World’s Best Airline Stock
Next articleWeight Loss Hacks For The Festive Season