airports

Airports

The future airports will be places where people want to be and not just a place where a person goes for transportation. With this belief and drawing from the strengths of the Adani Group’s experience in the integrated infrastructure and transportation businesses, Adani Enterprises Ltd. (AEL) ventured into the airports sector in 2019. Given India’s potential to become the 3rd largest global aviation market by 2025 and limitations of the existing aviation infrastructure of our nation, the company incubated the Adani Airports business, in line with its core philosophy of responsible nation-building.

After winning the Airport Authority of India’s global tender to modernize and operate six airports – Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram – Adani Airports received the Letter of Award to operate, manage and develop these six airports for a period of 50 years. Adani Airports commenced operations in Mangaluru International Airport (Mangaluru) on 31st October, 2020, Chaudhary Charan Singh International Airport (Lucknow) on 2nd November, 2020 and Sardar Vallabhbhai Patel International Airport (Ahmedabad) on 7th November, 2020.

Furthering the objective of building future-ready, robust infrastructure, Adani Airports is committed to redefine the city-airport relationship by building shared facilities that cater to new global travel, life and work requirements.

 

 

Currently AEL has received Letter of Award (LOAs) for three airports i.e. Ahmedabad, Lucknow and Mangaluru from AAI.

Key particulars of draft concession agreement are as follows:

Particular Description
Scope of the Project

Operations, Management and Development of Airport including–

  1. design, development, financing, construction, upgradation and expansion of Airport in a phased manner
  2. operations, maintenance and management of the Airport
  3. development operation and maintenance of city side
Term 50 years from the COD (as defined in the Concession Agreement)
Monthly Concession Fee
  • Concessionaire to pay to AAI “Per-Passenger-Fee” for each passenger handled at the airport on monthly basis
  • Monthly Concession Fee = (International PAX * Per Passenger Fee for Intl PAX) + (Domestic PAX * Per Passenger Fee for Domestic PAX)
  • Per Passenger Fee for International PAX = 2 * Per PAX fee for Domestic PAX
  • The Fee paid shall not be taken into account as an allowable expense for determination of aero charges
Control Period & determination of aero charges
  • Aero charges determined basis Regulated Asset Base (RAB) and approved capex
  • 30% Shared-till framework (Non-aero and city side development to subsidize aero charges)
  • Control period to end in 2021 post which there could be a revision in aero charges by AERA