Snapshot
GMR Airports Limited (GAL), a subsidiary of GMR Infrastructure Limited, on Thursday won a $6 billion bid for the development and operation of Kualanamu International Airport in Medan, Indonesia.
Indonesian government is hoping that the Kualamanu airport will emerge as a key aviation hub and emerge as a challenger to Singapore’s Changi Airport and Kuala Lumpur International Airport
GMR Airports Limited (GAL), a subsidiary of GMR Infrastructure Limited, on Thursday (Dec 2) won a $6 billion bid for the development and operation of Kualanamu International Airport in Medan, Indonesia. Medan is the fourth largest urban area in the country and is capital of North Sumatra province.
Indonesian government is hoping that the Kualamanu airport will emerge as a key aviation hub and emerge as a challenger to Singapore’s Changi Airport and Kuala Lumpur International Airport.
GMR will enter into 49:51 partnership with France’s Aeroports de Paris Group -for this project. The companies will form a joint venture called Angkasa Pura Aviasi, which will be majority-owned by Angkasa Pura II.
The consortium will transform Kualanamu International Airport into Western International hub of Indonesia, the company said.
The airport handled more than 10 million passengers in 2018. The project scope includes operation, development and expansion of the airport over a period of 25 years. Kualanamu International Airport is an operating Airport with healthy cash flows.
While Changi airport drew 68 million passengers and Kuala Lumpur International Airport handled 62 million in 2019, Indonesian government envisions that the redevelopment of the existing Kualanamu International Airport will transform in to a major aviation hub by attracting significant number of passengers traveling between South Asia, North Asia and Australia.
Commenting on the development, Srinivas Bommidala, Chairman Energy & International Airports, GMR Group, said, “GMR Airports Limited is delighted to have been announced the winning bidder for the development and operation of Kualanamu International Airport in Medan, Indonesia.”
The project marks the entry of GMR Airports in fast growing Indonesian Aviation sector the largest in ASEAN and a high potential market and the group would like to take the opportunity to reiterate its commitment to transform Medan Airport into a Western International hub of Indonesia and contribute to overall infrastructure development of the country, he further said.
GMR Group is amongst the top 5 airport developers globally. Presently, the group owns and operates Delhi International Airport and Hyderabad International Airport. GMR is also currently developing a greenfield airport at Mopa in North Goa and an international greenfield airport at Bhogapuram, Vizianagaram in Andhra Pradesh. The company recently signed a concession agreement with Karnataka government to commission, operationalize and maintain the Bidar Airport in North Karnataka.
GMR Group also has good global footprint. It is operating and developing Mactan Cebu International Airport – the second largest airport of Philippines. In 2019, GMR was also awarded the contract to develop, operate and manage the new international Kastelli airport, also known as Crete airport, in Heraklion, Greece, in partnership with a Greek infrastructure company.