The Civil Indian Aviation Industry is set to leverage public-private partnership model for the expansive growth of the sector, with private sector players like Gujarat-based Adani Group gradually taking over Guwahati, Jaipur and Thiruvananthapuram airports’ operations
The Gujarat-based Adani Group will assume control over the operations of Jaipur International Airport and Thiruvananthapuram International Airports by the second week of October.
While the operational take over for Jaipur International Airport is to begin from 12th October, the company will undergo the observation period starting from 12th August. During this period the Gujarat-based Adani Group will gather substantive details and information on the functioning of the airport.
On the other hand, the takeover process for Thiruvananthpuram Airport is in the final stages and is likely to be completed by October 18. AAI will subsume the operations for a period of 6 months even if the Adani Group takes over the operations by October. The state is likely to sign a Memorandum of Understanding (MoU) with the Adani Group during this period.
Three concession agreements were signed by the Airport Authority of India (AAI) this year, for the takeover of Jaipur, Thiruvananthapuram and Guwahati airports by the Gujarat-based Adani Group for the next fifty years.
Two years back, the group won bids for 6 AAI airports and now, has been accorded with the right to operate, develop and maintain Jaipur airport for the next fifty years by the Union cabinet. They have progressively started taking over the Guwahati, Lucknow and Mangalore airport operations.
At present, Jaipur airport employs 250 people, out of which 150 employees will be absorbed by the Gujarat-based Adani Group on same conditions and benefits as before. AAI will accommodate the remaining staff in its other departments.
The group will deposit the required security amount of around Rs 1,000 Cr for the lease. After taking over the airport the Adani Group will decide upon things like time-bound entry of vehicles in the porch areas, parking fees or any curbs for passengers or their relatives.
The Adani Group stationed in Gujarat, will be in control of all the operations of the airport except for Navigation & Surveillance (CNS) and Air Traffic Control (ATC).
Other than ATC and CNS, Central Industrial Security Force (CISF) will handle the airport’s security and the Adani Group will be in charge of running the airport’s commercial activities including the development of restaurants and other amenities. Also, the development of terminal-3 at the Jaipur airport is in pipeline for the group.
With all the infrastructural development at the airport, authorities are expecting things to be a little costly.
Arvind Singh, AAI Chairman said, “It is a significant occasion when we complete this round of signing of concession agreements for three airports under the PPP mode. Looking forward to healthy participation from the private sector in the growth story of Indian civil aviation.”
Adani Group will pay Rs. 160 (domestic) and Rs. 320 (interntional) per passenger to AAI, Rs. 174 (domestic) and Rs. 348 (international) for Jaipur airport and Rs. 168 (domestic) and Rs. 336 (international) for Thiruvananthapuram. The domestic fee per passenger will be revised every year.
“The concession fee will be received by AAl after leasing out six airports will be used for the maintenance and development of other brownfield airports and also for further development of regional connectivity scheme and greenfield airports throughout the country,” – a statement by AAI.
The Gujarat-based Adani Group will be the biggest Indian private airport operator (as to number of airports handled) with 7 functional airports and one greenfield airport at Navi Mumbai under its umbrella.