As coronavirus hits travel, Adani ready for India aviation growth

GVK Power & Infrastructure

02/09/2020 13:09

By Aditi Shah
    NEW DELHI, Sept 2 (Reuters) - India's Adani Enterprises
 ADEL.NS  says it is well placed to build the infrastructure
needed to support the country's expected aviation growth, which
has been curtailed by the coronavirus crisis.
    The company's chairman Gautam Adani made the comment on
Wednesday, only days after Adani Airports said it had agreed to
buy GVK Power & Infrastructure's  GVKP.NS  majority stake in
Mumbai International Airport (MIAL), to give it control of one
of India's biggest and busiest transport gateways.  urn:newsml:reuters.com:*:nL4N2FX1ZZ
    Adani did not mention the impact of the COVID-19 pandemic on
any growth plans. Global air travel has slumped since March,
with government-imposed coronavirus restrictions and public
wariness about travel hitting airports and airlines.
    Credit rating agency Fitch in a note last month forecast
consolidation in the Indian aviation sector and warned of a slow
rebound in demand, with domestic passenger volume growth "in the
single digits over the next few months".
    Fitch also said that most Indian airlines reported passenger
load factors of 50%-60% in July, versus 80%-90% last year.
    India plans to build 200 additional airports and handle more
than a billion domestic and international passengers, Adani said
in a statement, adding that over this period India's top 30
cities are expected to require two airports.
    "Adani Airports sees itself well-positioned to help build
the infrastructure platform required," he said. 
    Adani Airports, a unit of Adani Enterprises, last year won
the mandate to modernise and operate six airports in large
Indian cities including Ahmedabad and Jaipur in the west and
Guwahati in the east. These are major business or tourism hubs. 
    Adani said the acquisition of Mumbai airport, along with the
other six, will give the group a "transformational platform" and
create strategic opportunities for its other businesses.  
    Adani Group, an industrial conglomerate with revenues of
over $15 billion, has businesses across power, gas distribution,
renewable energy, logistics, ports, roads and rail.  

 (Reporting by Aditi Shah;
Editing by Alexander Smith)
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