Adani’s aviation business is going through an expansion phase as the conglomerate is moving deeper into the aircraft services segment. The Adani Group is now planning to enter the market of aircraft engine maintenance and passenger, to, freighter conversions. With this step, the group intends to consolidate its position all over the aviation value chain. The move is consistent with their bet on India’s rapidly expanding aviation market.
Besides that, the development fits well with the airport operations and aviation services that Adani already has. As domestic air travel picks up, the group is betting on long, term prospects beyond airport infrastructure.
Adani Aviation Business Expansion Concentrates on Aircraft Services
The Adani Group has done a smart move by separating its aviation operations into two different verticals. One is focusing on airport infrastructure. The other is handling aircraft services for civilian and defence use. Thus, the group can grow each business separately.
At present, Adani is bringing together all its MRO capabilities under a single platform. The move is combining two established aviation service providers, Air Works and Indamer, into one integrated MRO network in India, which is now operated by the group.
There is more. Adani intends to broaden the scope of landing gear maintenance, aircraft painting, and cargo aircraft conversion. The engine maintenance as well, continues to be a major ambition of the company in the long run.
Growing MRO Footprint Strengthens Adani Aviation Business Expansion
Adani group did this by selectively buying companies in the MRO space. First, the group bought Air Works and upgraded its defence MRO capabilities. Then the group went ahead and completely took over Indamer Technics with a JV.
Moreover, Adani is setting up MRO bases in more cities. Ahmedabad, Guwahati, and Bhubaneswar are the new cities in the MRO growth plan. These places do not have big MRO facilities for now. So, the expansion is helping with less aircraft downtime and dependency on foreign countries.
Such a move is also in line with the governments support to turn India into an aviation services hub.
Pilot Training and Cargo Conversion Are Two Big Future Growth Points
On the other hand, pilot training is also an area of interest alongside MRO. By acquiring a majority stake in a flight simulation company, Adani has recently entered this segment. Now the platform runs several simulators.
Still, the group is sure that the Indian market can accommodate many more. In the long run, Adani is willing to increase the number of simulators all over India. This step is in agreement with the rise of aircraft orders and consequently the need for pilots.
Passenger, to, freighter conversion is also a growth strategy that the company is implementing. As a result of the rapidly increasing e, commerce and air cargo demand, the converted freighters are gaining popular commercial value.
Long, Term Vision for Indias Aviation Market
Indian airlines are set to bring home close to 1, 700 new planes over the next few years. The huge spike in demand for pilots, aircraft maintenance, and cargo services will be a natural consequence of this avalanche of deliveries. That is why the expansion of Adani’s aviation business is a great way for the group to keep growing over the long term.
The group, supported by hefty investments in airport infrastructure, is now signalling that it wants to create a fully integrated ecosystem in aviation.
