Adani Airport Holdings Ltd (AAHL), a unit of Adani Enterprises Ltd, on Tuesday took control over the administration of Mumbai International Airport Ltd (MIAL) from the GVK Group.

This followed approvals from the Union government just as the public authority of Maharashtra, and Maharashtra’s City and Industrial Development Corporation (CIDCO)

“Our larger objective is to reinvent airports as ecosystems that drive local economic development and act as the nuclei around which we can catalyze aviation-linked businesses. These include metropolitan developments that span entertainment facilities, e-commerce and logistics capabilities, aviation-dependent industries, smart city developments, and other innovative business concepts,” said Gautam Adani, chairman of the Adani group.

“Our airport expansion strategy is intended to help converge our nation’s Tier 1 cities with the Tier 2 and Tier 3 cities in a hub and spoke model. This is fundamental to enabling a greater equalization of India’s urban-rural divide, as well as making international travel seamless and smooth,” he added.

AAHL became the country’s largest airport operator after it took a controlling stake in MIAL earlier this year. AAHL expects its share of passenger traffic to increase at a compound annual growth rate (CAGR) of 12% from 80 million in FY20 to 100 million in FY22, according to the statement.

According to a March report from rating agency Icra Ltd, the airport sector is likely to incur a net loss of ₹5,400 crore in the financial year ended 31 March 2021 due to a sharp drop in passenger traffic following the covid outbreak. The report has also estimated a cash loss of ₹3,500 for the sector (source: Mint)