Adani Airport Holdings Makes a Move for Ground Handling Services at Key Airports
Insight into the ground handling landscape
Business tycoon Adani set to place bids for airport ground handling operations in Mumbai and Ahmedabad, as per recent reports.
Adani Airport Holdings is planning to bid for ground handling services at Ahmedabad and Mumbai airports, following the departure of the Turkish firm Celebi Hava Servisi AS due to security concerns by the Indian government [1][3]. Per airport regulations, facilities with over a million annual passengers must have a minimum of three ground handlers. If Adani succeeds in its bid, it will become the third handler at these specific airports [3].
Before Celebi's exit, the ground handling scene at major Indian airports featured players such as Air India SATS, a collaboration between Air India and Singapore's SATS, Bird Group, Indothai, and government-owned AI Airport Services [2][4]. Celebi's departure has opened an opportunity for Adani to expand its operations, in line with its broader strategy to boost its impact in India's aviation sector [4].
The Adani Group's Expansion Plans
Adani Group aims to develop its airport business by acquiring additional airports and diversifying into related services such as ground handling, MRO (Maintenance, Repair, and Operations), and duty-free retail [2]. They recently purchased the MRO firm AirWorks. Anurag Srivastava, formerly with Bird Group, has been appointed to oversee the ground handling division [2][4].
Key Aspects of Adani's Bid
- Multiple Airport Bids: Adani is entertaining bids not only for Mumbai and Ahmedabad, but also at airports such as Delhi and Bengaluru [4].
- Competitive Landscape: The group will face competition from seasoned players within the ground handling sector [4].
- Strategic Approach: Entrance into ground handling services forms part of Adani's strategy to diversify and fortify its airport operations and services [3][5].
In summary, Adani's foray into ground handling services is both strategic and driven by the departure of Celebi and Indian airport regulations.
- The Adani Group, in alignment with its broader strategy, intends to expand its airport business by diversifying into services such as ground handling, MRO (Maintenance, Repair, and Operations), and duty-free retail, following its acquisition of AirWorks.
- The financial industry is closely watching Adani Airport Holdings, as their competitive bid for ground handling services will position them as the third handler at Ahmedabad and Mumbai airports, given Celebi's exit due to security concerns by the Indian government.
- The defi industry is observing the evolution of the aviation sector in India, as the deregulation of airport business has led to increased competition among companies, including Adani Group, Air India SATS, Bird Group, Indothai, AI Airport Services, and potentially other new entrants such as those anticipated in the ground handling sector.
