How Adani Is Set To Benefit From Twin-Airports Strategy, Explains Jefferies
The conglomerate expects reduced congestion, effective slot allocation, and non-aero revenues to multiply, Jefferies said.
Adani Enterprises Ltd. stands to gain from twin airports in Mumbai as it will not only reduce congestion but also enhance international traffic to India's financial capital, according to Jefferies.
Adani's single ownership could lead to competition among airlines as opposed to separate airport operators vying with each other, Jefferies said in an April 18 note, citing its interaction with the management. The conglomerate expects effective slot allocation for new international carriers and non-aeronautical revenues to multiply, the brokerage said.
The "hub-and-spoke" strategy will aid overseas traffic by catering to demand from a broader catchment area, Jefferies said. The research firm cited the company's plan to target foreign airlines with higher imbalances, such as carriers from the U.A.E., and prioritise those part of Star Alliance and One World.
Mumbai International Airport Ltd., which handled 45–49 million passengers a year, does not have capacity beyond 60 million, Jefferies said, adding that the company expects the traffic to nearly double by 2030 in the Mumbai Metropolitan Region.
Navi Mumbai International Airport Ltd., when fully operational, is estimated to cater to 90 million passengers a year, Jefferies said. The first of its four phases is scheduled to become operational by December 2024, with an initial capacity of 20 million passengers.
Improving Connectivity
The two airports, though over 40 kilometres apart, will be connected through the Mumbai Trans-Harbour Link, coastal roads, metro lines, and water transport, Jefferies said, citing the management. The projects are either under construction or in the planning stages.
The Navi Mumbai airport, covering 1,160 hectares, is set to have four passenger terminals, two parallel runways, 246 aircraft, and 138 contact stands, along with a 2.5 metric tonne cargo holding capacity. One runway and a terminal will become operational in the first phase.
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