Adani Airports Takes Off: CEO Bansal Unveils Vision for More Airport Acquisitions in India.
In the upcoming years, airport operating costs must decrease by 30 to 50 per cent, according to Bansal. "The decrease in costs will enable us to pass that benefit on to customers, which can increase the nation's air passenger volume." By 2040, he predicts that India's passenger traffic will reach 100 crores, with an annual average rise of 8.5%.
Adani Airports Takes Off: CEO Bansal Unveils Vision for More Airport Acquisitions in India.
According to Chief Executive Officer Arun Bansal on Wednesday, Adani Airports Holdings Ltd. plans to submit bids for additional airports as it hopes to rank among the top airport operators worldwide.
The Mumbai airport is one of the seven operational airports now under the management of India’s largest private airport operator. The forthcoming Navi Mumbai International Airport is anticipated to begin operations by the end of next year. The business received bids to run six airports in the government’s most recent round of airport privatization.
At the CAPA India Aviation Conference 2023, Bansal stated, “After the tender paperwork is published, we will review it and create a strategy.” “Our approach is to build scale, and when the bid conditions are favourable, we’ll bid.”
Together with Delhi and Mumbai, Bansal predicts that 30 other cities will have dual airports in the following years. Both Delhi and Mumbai will have twin airports with the operationalization of the airports in the National Capital Region in Noida and Navi Mumbai.
In the upcoming years, airport operating costs must decrease by 30 to 50 per cent, according to Bansal. “The decrease in costs will enable us to pass that benefit on to customers, which can increase the nation’s air passenger volume.” By 2040, he predicts that India’s passenger traffic will reach 100 crores, with an annual average rise of 8.5%.
Given the burgeoning passenger traffic, expanding infrastructure, good procedural and regulatory framework, and its distinctive geographic location on the world map, Bansal claimed that India was well-positioned to become the largest hub in the world. Yet talent is still a major issue, he noted. According to Bansal, the business wants to establish an institute with the government to address the issue.
Adani Airports: Operational Cost Reductions of 30–50% Are Required.
While he emphasized the growth potential of the Indian aviation industry, Arun Bansal, CEO of Adani Airports, indicated on Wednesday that the operational costs of airports must reduce by 30 to 50% in the future years.
The firm now runs seven airports and is developing a new one. Bansal, who is optimistic about the Indian market, stated that the company wants to manage more airports and eventually take the top spot among airport operators worldwide.
He added that Adani Airports is investing in both the physical and digital sectors as part of its commitment to increasing capacity. The cost of managing airports should decrease by 30–50% in the upcoming years, he pointed out, noting that over the previous 20–30 years, Indian aviation had been taken for granted.
Bansal stated that Adani Airports is optimistic about the nation’s aviation market and wants to “build additional airports,” adding that the first phase will see Navi Mumbai Airport open for business by December 2024.
The Navi Mumbai airport’s first phase would be able to handle 20 million passengers annually. Speaking at the CAPA aviation summit in this city, he added, “We are also working on (establishing) an aviation institute.” India is one of the aviation markets with the greatest growth rates in the world, and several Indian carriers have placed big orders for aircraft.
India has risen to become the third-largest domestic aviation market in the world, and by 2024, it is predicted to surpass the UK to occupy that position. Additionally, contributing 5% to the GDP, Indian aviation generated 4 million new jobs. Also, this industry contributes a gross value added to the GDP of US$72 billion.
India’s Aviation Industry is Growing
In India, civil aviation has seen a spectacular rise in popularity. Modern aeroplanes fly at speeds and with loads that are admirable and far superior to those of decades past.
With over 83 million domestic passengers served yearly, India is now one of the top 10 aviation markets, and the amount of air traffic for people and cargo is increasing quickly. Domestic freight traffic climbed by 19.9% from April to September 2022 compared to the same time last year.
By 2040, India will have one billion air travellers, and Navi Mumbai Airport phase 1 will open in December.
India will have a billion air travellers by 2040, according to The Adani Group, the country’s largest private airport operator (based on the number of airports in its portfolio), which currently manages seven operational airports, including Mumbai’s CSMIA and is building the upcoming hub at Navi Mumbai.
Over the next 20 years, passenger traffic is expected to increase by an average of 8.5%. At a CAPA meeting on Wednesday in Delhi, CEO of Adani Airport Holdings Limited (AAHL) Arun Bansal stated this prediction and said that the organization would go after more airports in the future.
The emphasis is also placed on urban growth because, in India, every passenger is accompanied by an average of three persons when they arrive or depart. All eyes are on the future Navi Mumbai International Airport (NMIA) to meet the expanding needs of the megapolis for aviation connectivity as the current Mumbai Airport is at capacity.
According to Bansal, the NMIA is being built with the potential to eventually accommodate nine crores (domestic and international) passengers and 2.5 million MT of cargo annually.
“The following stages will be implemented over the next 15 years, dependent on increasing passenger load and external connectivity, after phase one is finished in December 2024.
Two crore people and 0.8 million tonnes of freight can be handled yearly with the opening of NMIA’s Terminal 1. Mumbai will regain its status as a significant national hub as a result of the combined effect and the existing airport being under a single ownership structure, and growth will resume.
“This will also help with additional capacity and cross-leveraged development of other airports under the Adani portfolio,” Bansal said. In order for CSMIA and the planned Navi Mumbai Airport to function as a single airport ecosystem with five terminals, Adani is striving to provide mobility between the two.
Air traffic is virtually back to pre-Covid levels, but as new airports open and more than 30 cities become twin hubs, it will surpass the billion mark by 2040, up from the present 20 crores (domestic plus international).
In addition to corporate travel, the tourism boom is bringing people back to airports. The number of foreign and domestic travellers increased by 133% and 92%, respectively, at our seven airports during the course of the previous year, according to Bansal. He claimed that AAHL is utilizing technology to streamline passenger airport procedures.
“We keep an eye on the quality of the service offered at our airports. Our teams conduct audits to make sure that service standards are upheld, and that poor service is corrected.
He used the newly implemented terminal transfer service at Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) as an illustration. “Passengers at CSMIA with domestic airline connections can now transfer quickly and efficiently.
With increased domestic and international passenger traffic, these additional domestic-to-domestic (DTD) transfer options will further improve the airport experience, according to Bansal.
Pre-embarkation security checks are part of this designated area, which will also significantly reduce the minimum connection time (MCT) for crew and passengers transferring. Airlines will now be able to accommodate travellers who have shorter layovers between flights.
With this improvement, customers who would previously exit and re-enter the terminal to wait for their subsequent flight would now be able to get to the domestic departure concourse without having to go through the process of doing so, he said.
According to AAHL, it wants to operate green airports. It will switch from traditional fossil fuel energy use to green energy for emission reduction as the focus shifts to carbon neutrality.
Due to its efforts to reduce its carbon footprint, CSMIA has received the highest level 4+ “Transition” of the Airport Carbon Accreditation (ACA) programme of the Airport Council International, according to Bansal.
These efforts include: completely switching to green sources for its energy consumption needs, making CSMIA one of India’s 100% sustainable airports; expanding the onsite renewal power production plant to 4.65 MW capacity; building a unique vertical axis wind turbine & solar PV system o There will be a variety of sustainable projects at the 2018 NMIA.
They include the production of solar energy on the airside, solar roof panels for all structures, and EVs on the airside and the landside.
edited and proofread by nikita sharma