The Adani Group is considering entering the Passenger-to-Freighter (P2F) conversion business to address India’s increasing air cargo demand. This strategic move comes after the group’s acquisition of Air Works, India’s largest private Maintenance, Repair, and Overhaul (MRO) company. By leveraging Air Works’ technical expertise, Adani aims to develop a dedicated freighter fleet to strengthen domestic and international logistics capabilities.
India’s air cargo market is projected to grow at a compound annual growth rate (CAGR) of 6-8% over the next decade, driven by rising e-commerce, increased manufacturing output, and global supply chain demands. Despite this potential, the country currently operates only 20-25 cargo planes, significantly below the anticipated need. Industry experts estimate that by 2030, India will require 80-100 dedicated freighters to meet growing demand.
Adani’s potential foray into P2F conversions could play a crucial role in bridging this capacity gap. By transforming retired passenger aircraft into freighters, the group would enhance cargo capacity while optimizing costs. This initiative aligns with the government’s push to strengthen air logistics infrastructure under the National Logistics Policy, which aims to make India a global logistics hub.
The acquisition of Air Works provides Adani with a significant advantage in the P2F market. As one of the most established MRO providers in India, Air Works brings decades of technical knowledge and operational capabilities, which are essential for the complex process of converting passenger planes into cargo aircraft. With the global air cargo sector witnessing increased demand for cost-effective freight solutions, Adani’s entry into P2F conversions could position the conglomerate as a major player in the air logistics space.
Industry observers view this move as part of Adani’s broader strategy to expand its logistics and transportation portfolio. The group has already made substantial investments in ports, airports, and warehousing, creating an integrated supply chain ecosystem. Adding P2F capabilities would further strengthen its position in the rapidly evolving air cargo market and support India’s ambition to become a leading player in global trade.