Adani Airports is currently in advanced discussions with Hong Kong-based Plaza Premium Group to establish a joint venture for the operation of airport lounges throughout India, according to sources familiar with the negotiations reported to ET. The potential collaboration signifies the return of the airport hospitality services giant to the Indian market.
Plaza Premium Group had previously overseen a majority of India’s premium airport lounges, but post-2021-2022, it had to discontinue its services due to security clearance issues, as revealed by insights from airport executives.
The Adani Group views this prospective partnership as a strategic move to enhance hospitality standards at its airports, with both partners contributing to existing and upcoming lounges. Adani Airports, accounting for 25% of passenger footfalls and 33% of air cargo traffic in India, currently manages most of its lounges at airports, including prominent locations like Mumbai, Ahmedabad, Jaipur, Mangaluru, Thiruvananthapuram, Lucknow, and Guwahati. Additionally, the conglomerate is in the process of constructing India’s most expensive airport, valued at over ₹19,000 crore, on the outskirts of Mumbai.
Anticipating to engage with 400 million consumers through its airport business by 2028, Adani is strategically positioning itself in the aviation sector. Plaza Premium Group, boasting an international presence with over 250 locations at 80 airports across 30 countries, faced contract terminations in Delhi and Bengaluru in 2021 and 2022, attributed to security clearance issues. This potential collaboration could redefine the landscape of airport services, enhancing the travel experience for millions of passengers.
