In a major bet on the future of Indian air travel, the Adani Group has unveiled plans to invest a staggering ₹1 lakh crore in its airports business over the next five years. The announcement comes from Jeet Adani, Director of Adani Airports, ahead of a landmark moment for the conglomerate—the commencement of commercial operations at the Navi Mumbai International Airport on December 25.
A New Aviation Hub Takes Flight
The spotlight is firmly on the Navi Mumbai International Airport (NMIA), which is set to begin operations this week. Developed by Navi Mumbai International Airport Ltd (NMIAL), where the Adani Group holds a controlling 74 per cent stake, the first phase of the airport has been built at an initial cost of ₹19,650 crore. This phase will empower the facility to handle 20 million passengers annually, with a master plan to eventually scale this capacity up to a colossal 90 million passengers.
Jeet Adani termed this a pivotal moment for Indian aviation, highlighting that the new airport will finally ease the severe capacity constraints that have plagued Mumbai’s existing Chhatrapati Shivaji Maharaj International Airport since 2016. "With the start of Navi Mumbai Airport, we will finally see some relaxation there," he stated, emphasising that the asset's growth potential is far from exhausted.
Aggressive Expansion and a Bullish Vision
The massive capital expenditure plan is underpinned by an extremely bullish outlook on India's aviation sector. Jeet Adani projected that India's aviation industry can sustain a growth rate of 15-16 per cent year-on-year for the next 10 to 15 years. This optimism is driven by the nation's low per-capita air travel compared to countries like China, indicating a vast, untapped market.
To capture this growth, the Adani Group is not just investing in new infrastructure but is also preparing for aggressive expansion through upcoming privatisation rounds. The group, which already operates eight airports including the two in Mumbai, Ahmedabad, Lucknow, and Mangaluru, has its sights set on the next batch. "As a staunch, bullish believer in this industry, we would be 100 per cent very aggressive in the next round of bidding for all 11 (airports)," Adani declared. The Civil Aviation Ministry has identified 11 airports for the next round of public-private partnerships.
Building an Integrated Aviation Ecosystem
The investment strategy extends beyond just runways and terminals. Through its subsidiary Adani Airport Holdings Ltd (AAHL)—now India's largest airport infrastructure operator—the group is focusing on creating a comprehensive aviation ecosystem. This includes:
- Capacity upgrades and phased expansions at its existing network of airports.
- Scaling ancillary revenue streams like non-aeronautical retail and city-side developments.
- Developing separate verticals for aircraft services, including Maintenance, Repair, and Overhaul (MRO) and Flight Simulation Training Centres (FSTC) for dual civilian and defence use.
AAHL already commands a significant share of India's air traffic, managing roughly 23 per cent of all passenger movement and 33 per cent of the nation's air cargo traffic. The planned ₹1 lakh crore infusion is set to consolidate this leadership position further, transforming the group's airport assets into diversified, high-revenue hubs ready for India's aviation boom.
