SINGAPORE ~ Singapore’s Changi Airports International has formed a strategic alliance with India’s Tata Group to invest in, develop and manage airports in India.
The companies will establish a joint venture firm that will bid for the Chennai and Kolkata airports which are being privatized by the Indian government, Changi Airports said in a statement on Wednesday.
“Privatization programs for both airports are expected to be formally announced some time later this year,” the statement said, adding that the joint venture would also look for investments in other Indian airports.
Chennai Airport handled 6.77 million passengers last year and is the third busiest airport in India. The Kolkata Airport is the country’s fifth busiest, with annual passenger traffic of 4.4 million, the Changi statement said.
Under the memorandum of understanding, Tata Group will have a 51-percent stake in the joint venture, while Changi Airports will hold 49 percent.
Changi Airports chief executive Chow Kok Fong said the Indian aviation market “is likely to see sustained economic development approaching double digits, proof that the momentum for growth is truly awesome.”
Changi Airports is wholly owned by the Civil Aviation Authority of Singapore, which operates Singapore’s Changi Airport.
Last month, Changi Airports announced it has acquired a 29-percent stake in Nanjing Lukou International Airport, the largest airport in China’s Jiangsu province, for US$138 million.
Elsewhere in China, the company is also providing consultancy services to the airports in Chengdu and Qingdao.
Changi Airports is currently operating the existing airport in Abu Dhabi and is expected to take over the running of the New Terminal 1 of the Sheremetyevo Airport in Moscow from April 1 this year.