Why is Adani buying airports? 🛫
In 2023, Indian airports will make $3.9 billion 💰
Adani is the front runner in buying airports 🤯
Here's how the airport economy works ⬇️
The Indian airport's story ✨
It all started with privatizing Cochin airport (1999), followed by Hyderabad (2002), Bengaluru (2004), Delhi & Mumbai (2006).
But, why the move in last 20 years? 💭
According to the government, selling airports is generating short term cash for Airport Authority of India (AAI) & will be used to develop better Aviation infrastructure in India. I'm going to take a pause here - I think you understand what's cooking ;)
How did Airports become so cash-rich? 💸
Airports are micro-monopolies approved by the government. Within the perimeter of airports, the private operating companies lay the laws of commerce.
1/ Flight arrivals & parking 🛬
Bangalore airport is paid Rs.839 per international passenger & Rs.184 for domestic passenger. This is part of passengers' final ticket price. Larger planes (A320) have to pay as much as 1L/day for a day of parking. This is the major revenue source for airports.
2/ Airport bridges 🚌
Observed how domestic airlines almost never use the airport bridges to deplane passengers? Cause it costs exponentially higher than using a ramp. Now you know why we waste time with those ramps.
3/ Terminal revenue 🍔
Restaurants & retail shops pay a fixed rent to use the commercial space. Plus, few lease agreements involve revenue sharing with the airport on every good sold. Airports invented their own tax model ;)
4/ Parking & cab operating rights 💰
This is straight forward revenue from vehicles coming into the airport area & parking for short/long duration. Plus, Airports sell rights to cab aggregators (OLA, Uber, Meru).
Are all 4 sources equal? 🧩
Absolutely not - Delhi Airport generates 36% of its total income from non-aeronautical source. Bigger the airport, higher will be this share.
What's next for airports? 💙
India's domestic air passenger traffic grew by 74% year over year if you compare last few months. Indian airlines are carrying peak 2.4 crore monthly passengers.
Airports = big cash flywheel 🎡
More passengers → More flights → Bigger airports → More retail space → more revenue → money to build more airports.
This Sunday, I’m coming to Delhi ❤️
At GrowthX, we have taken an audacious goal of helping 1000+ founders nail their revenue goals this year - and we are doing it in-person by spending a full Sunday together. We call them “Founder focused masterclass”.
Coming sunday, we are curating 300+ founders in Delhi NCR. Mostly, seed → series B stage of companies. If you are a founder building from Delhi NCR, read on & thank me later.
What’s the outcome for founders? ⬇️
→ Build a 1 year revenue growth model for your product.
→ Define a structured growth process for your team.
→ Design a low CAC channel for your product.
→ Get clarity on your team structure & hiring plan.
→ Connect meaningfully with 300+ Delhi NCR founders.
Are you a founder? 🚨
Don’t think twice, go ahead and grab a pass from the link in comments. You will have the most productive Sunday ever in your life. Plus, this will become an inflection point for your revenue growth plans this year - I promise.
Does GrowthX make any money out of it? 💰
Absolutely not. The nominal fees are to cover venue cost as it’s in-person. Plus, GrowthX chips in additional money to build a delta experience for the builders.
Last time was in Namma Bengaluru ❤️
Over 1000+ founders applied and we only had 200 spots (picture from the B’luru masterclass), If I were you, I would not waste time & block a spot.