Mumbai airport terms: Adani, carriers differ

The airport in India's financial capital of Mumbai, run by the Adani Group, has triggered a lobbying effort by top carriers IndiGo and Air India after it changed payment rules, citing financial needs and a risk of airline defaults, documents show.

- Reuters

NEW DELHI:

The airport is one of India's busiest at a time when dozens are being added in one of the world's fastest-growing aviation markets. It is the biggest of seven managed by a group led by billionaire Gautam Adani.

Confidential letters seen by Reuters show the pushback to the change, which seeks a compulsory cash deposit in a bank as security against charges like landing and parking fees, instead of a long-standing practice of bank guarantees.

"None of these airlines normally pay on time...we want to align our cash flow with the airlines' cash flow," said Arun Bansal, the chief executive of Adani Airport Holdings, which has a stake of 74% in the airport.

"They have taken advantage of our niceness," he added, referring to resistance to the new payment system from IndiGo and Air India since the change came last October.