Adani Group Plans Lounge Upgrade Across Airports, Eyes Partnership With Global Giant Plaza Premium

Adani Airports, part of billionaire Gautam Adani's conglomerate, is in advanced talks with Hong Kong-based Plaza Premium Group to establish a joint venture for operating its airport lounges across the country, reports ET.

If finalised, this partnership would mark the return of the renowned airport hospitality services giant to the Indian market.

Plaza Premium Group, a global provider of premium airport services, launched its lounge at Delhi airport in 2008. Unfortunately, contracts with Plaza were terminated by airport operators in Delhi and Bengaluru in 2021 and 2022 respectively, citing security clearance concerns.

The Adani Group has firmly established itself as a significant player in India's burgeoning aviation sector. Through its subsidiary, Adani Airport Holdings Limited (AAHL), the group currently oversees operations at seven airports across the country, including Mumbai, Jaipur, Guwahati, Lucknow, Thiruvananthapuram, Mangaluru and Ahmedabad. Additionally, the AAHL is developing the Navi Mumbai International Airport (NMIA) on the outskirts of Mumbai. 

In fact, according to their latest investor presentation, Adani has identified upgrading lounge infrastructure as part of its non-aero strategy, aiming to provide top-notch services through partnerships with reputable third parties.

As per a Frost and Sullivan 2022 report, the Indian lounge market is anticipated to expand to four times its current size, reaching 204 lounges by 2040.

Airport lounges in India have experienced steady growth over the past five years. While growth was primarily driven by metro cities until about 2-3 years ago, lounges have been expanding in non-metro airports as well in the past two years. An airport with an annual passenger movement of around 5-6 million can successfully accommodate a lounge.

The number of lounges in an airport is proportional to the passenger numbers; the top 24 global airports average at around seven lounges per airport. The Indian airports average at around two lounges per airport, noted the Sullivan report.