Big airline likely to shift to Panvel, Navi Mumbai airport by Adani Group
The cost of moving the entire base from Mumbai to Navi Mumbai is also not high. The airline will get the benefit of prime slots at Navi Mumbai airport, Panvel.
At present, Adani Airport Holdings (AAHL), a group company of the ports-to-power conglomerate, manages airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. Also, it is developing Panvel, Navi Mumbai airport which is likely to be operational by 2024.
Billionaire Gautam Adani-controlled Adani Group is actively considering a 200 percent increase in the commercial area in the airport, constructing multiplexes and Legoland theme parks in the city side. More importantly, it plans to shift one of the big airlines to Panvel, Navi Mumbai airport in an earnest bid to decongest Mumbai airport and boost revenue from its eight airports.
The airport will be operational by December 2024 and will have a capacity of 2 crore passengers.
The Ahmedabad-based conglomerate wants to shift focus to “underserved” international routes, raise the share of wide-body aircraft at its airports, and woo airlines with monetary and non-monetary benefits. It also plans to develop Mumbai airport as a transit hub on the lines of Dubai airport.
In the second presentation, it group mentioned that it is planning to increase passenger capacity from 3.1 crores to 7.5 crores at the seven operational airports by 2027. Further, in the first phase, the Panvel, Navi Mumbai
The Adani Group presentation mentioned that the Mumbai airport had two major airlines with domestic and international airlines—IndiGo and Air India. One of these airlines may be shifted to Panvel, Navi Mumbai International Airport so that the load on Mumbai International Airport (MIAL) can be reduced.
Mumbai airport is the second busiest airport in the country and there is further no scope for capacity expansion beyond 6 crore passengers per year as it is in the heart of the city, the financial daily, mentioned, citing one of the presentations. This means that there is effectively no new slot available for airlines at Mumbai airport.
Currently, Mumbai airport operates 2,573 weekly flights, of which 919 are IndiGo and 390 Air India flights. Vistara and Go First are at number three and four with 364 and 243 flights, respectively, as per data from aviation analyst firm Sirium.
The airline will get the benefit of prime slots at Panvel, Navi Mumbai airport. Also, the cost of moving the entire base from Mumbai to Panvel, Navi Mumbai is not high because shifting just spillover will result in an additional initial setup cost to the airline.