Adani Group begins making changes to brands and displays to bring them into line with concession agreements they signed with the Airports Authority of India

Three committees of the center-run Indian Airport Authority (AAI) concluded in January that the Adani Group was violating brand standards, prescribed in concession agreements, at the airports of Ahmedabad, Mangaluru and Lucknow that the conglomerate has resumed last year. .

As a result, the companies of the Adani group – which operate these three airports – have started to develop the signs and displays in order to bring them into line with the concession agreements they had signed with the IAA.

As of June 29, brand and display changes were underway at Lucknow and Manglauru airports and had been completed at Ahmedabad airport, the IAA said.

PTI accessed various documents related to this matter, including details received in response to RTI’s inquiries.

The Adani group won the tenders to operate the three aforementioned airports in February 2019. Its companies – Adani Lucknow International Airport Limited (ALIAL), Adani Mangaluru International Airport Limited (AMIAL) and Adani Ahmedabad International Airport Limited (AAIAL) – signed the concession agreements. with the IAA in February 2020. These companies then took over the airports in October and November 2020.

Breach of trademark standards

The IAA in December 2020 found the markings and displays at all three airports not complying with concession agreements. Therefore, he wrote letters to ALIAL, AMIAL and AAIAL, asking them to take “corrective action”. However, those companies responded at the end of December that they had not violated the trade mark standards of the agreements.

A month later, the IAA formed three separate committees to conduct a “joint investigation” of all signs and displays at the three airports and verify that they comply with concession agreements.

Each committee was made up of four members: an executive from the Adani group company that operates the airport, an officer from Center-run Engineering Projects (India) Limited and two officers from the IAA.

At the end of January, the committee formed at Lucknow airport submitted its report. He said: “The Joint Inspection Committee found that the advertising signs displayed by the concessionaire (ALIAL) at the entrance and exit of the airport also listed Adani airports on both sides of the advertising boards. from Lucknow International Airport, which is in violation of Concession Agreement No. 5.15.2. ” The committee also found that the IAA name and logo were not displayed equally and prominently in other displays where the dealer intends to display their own name, which constitutes a again a violation of article 5.15.2 of the concession contract.

Clause 5.15.2 of the three concession agreements stipulated that airports would be known, promoted, displayed, advertised and marked by name only, such as “Sardar Vallabhbhai Patel International Airport”, “Lucknow International Airport” and “Lucknow International Airport”. Mangaluru ”.

The clause also stated that if the dealership intends to display its own name or that of its shareholders in places where other public notices are posted to users, these will be preceded by the name of the IAA.

At the end of January, the committee formed at Mangaluru airport noted similar violations of clause 5.15.2 by the concessionaire (AMIAL), as observed by the Lucknow airport committee.

At the same time, the committee formed at Ahmedabad airport submitted its report. He also said the clause was violated by the dealership (AAIAL) because the AAIA logo is not displayed before the AAIAL logo and furthermore, the size is not uniform.

“The size of the AAIAL logo in relation to AAI is almost 6: 1,” the Ahmedabad airport committee added.

In addition, the Ahmedabad airport committee found that clause 5.15.1 of the concession contract was “totally ignored and violated while displaying the identity of the concessionaire (AAIAL)”.

Clause 5.15.1 of the concession agreement signed between AAIAL and AAI stated: “The airport or any part of it must not bear any mark to advertise, display or reflect the name or identity of the concessionaire. [AAIAL] or its shareholder. “” Unless and unless this is necessary in the normal course of business and always with the name of the Authority [AAI], the dealer [AAIAL] undertakes not, in any way, to use the name or identity of the airport to advertise or display its own identity, brand image or commercial interests, including those of its shareholders, ”adds the clause.

Co-branding in airports, avenues

PTI asked the Adani group if it agreed with the conclusions of these three committees and if it had completed modifying the displays and markings of the three airports to conform to the concession agreements.

In response, a spokesperson for the Adani Group said: “We are proud to partner with the IAA and continue to work together to provide the best airport infrastructure for passengers, ensuring the smoothest and most efficient airport experience. sure possible. AAI and Adani airports have mutually agreed to co-branding at airports and other related avenues. “” As per the agreement, the logos of both – the authority and the operator – are displayed together in the same size on all agreed signs and billboards. The presence of the two strong brands demonstrates the true spirit of public-private partnership which aims to enhance the travel experience of passengers in addition to better connecting India and the world, ”the spokesperson said in a statement.

Meanwhile, in a response from RTI dated June 29, 2021, the IAA – which reports to the Ministry of Civil Aviation – said PTI that ALIAL and AMIAL are currently in the process of “modifying brands and displays [at Lucknow and Mangaluru airports] in accordance with the provisions of the concession agreements “.

However, the IAA added in RTI’s response that “the current markings and displays at Ahmedabad airport comply with clause 5.15 of the concession contract”.

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