The Adani Group has unveiled a five-year, $11-billion expansion plan for its airports business, focusing on infrastructure rather than starting an airline in India’s rapidly growing aviation market.
Bidding for Airports
The conglomerate, led by billionaire Gautam Adani, plans to bid for all 11 airports that the government intends to lease to private operators. This is part of India’s ambitious plan to increase its airport network from 163 to 350–400 by 2047. Airports on the lease list include Amritsar and Varanasi. Jeet Adani, director at Adani Airports Holdings Ltd., confirmed the company’s intent to participate in all bids.
Market Context
India’s aviation sector is among the fastest-growing globally. In 2024, 17.4 crore passengers traveled by air domestically, a 10% rise from the previous year. Indian carriers have ordered more than 1,300 aircraft since 2023, highlighting robust market growth.
No Airline Plans
Jeet Adani clarified that the group has no plans to launch an airline, citing thin margins and a lack of operational mindset for airlines. “Our core competency is creating and efficiently running hard assets on the ground with long gestation periods,” he said.
Current Operations and IPO Plans
Adani Airports is India’s largest airport operator by number of facilities, managing seven airports, including the newly built Navi Mumbai International Airport, which will begin operations on December 25. While there is no set timeline for an IPO or demerger, Jeet Adani indicated that a public listing would depend on milestones like becoming cash positive. Currently, the business is largely EBITDA positive but requires further capital deployment. Valuation for an IPO has not been finalized, with comparisons to similar businesses expected to guide the number.
