Who runs lounges at various airports in the country?
Travel Food Services Private Limited (TFS), Saptagiri Restaurant Private Limited and Encalm Hospitality Private Limited are top three lounge operators in the country. Adani group operates seven airports and these have 17 lounges. The lounges at Adani airports are run by the group in partnership with other companies including TFS.
How is the access to the lounges determined ?
There are primarily two types of lounges - those which are exclusive to an airline or an airline alliance ( Star Alliance, SkyTeam or oneworld) and common use lounges developed by airports. Currently among airlines only Air India has an exclusive lounge at Delhi airport. While the Air India lounge for domestic passengers is operational, the one on the international side is under renovation.
Common use lounges developed by airports is the prevalent type of lounges in India. Access to lounges is generally available to top tier members of loyalty programme, first or business class passengers of airlines and credit card holders. According to the Crisil Intelligence report of June, 70-80 per cent of passengers access airport lounges using their credit card programme.
What is the DreamFolks controversy all about ?
DreamFolks, which is a travel and lifestyle aggregator, began operations in 2013. DreamFolks has tie-ups with lounge operators, banks, card networks, airlines and other corporates. With these tie-ups it facilitates access to airport lounges through its platform. The company generates significant share of revenue on a per passenger basis (by levying a pre-determined fee on its clients) which is recognised when a user swipes or taps credit card/debit card at the lounge.
Earlier this week DreamFolks notified stock exchange that certain programmes of ICICI Bank and Axis Bank have been discontinued from July 1. Its promoter Liberatha Kallat also accused airport operators of pressure tactics that had resulted in closure of programmes.
What changes have been made by Adani group at its airports with respect to lounges. Does it impact passengers/card holders?
The Adani group says that intermediaries are no longer required for accessing lounges as Indian banks are now directly collaborating with the group to enhance service quality and experience for their customers. Bank card holders may access lounges either via a swipe of card at EDC machines or through pre-booking via a QR code process. This programme offered by Adani Digital Labs covers all lounges at the group-run airports.
Thus, the DreamFolks controversy has no impact on passengers. Card holders of Axis Bank or ICICI Bank can continue to access the lounges unless terms and conditions are changed by banks.
What’s the road ahead for DreamFolks?
DreamFolks said it is currently evaluating exact potential impact of ICICI Bank and Axis Bank’s actions and it is likely to be material in nature. The company is committed to take requisite actions for mitigating the impact.
“We would like to assure our investors that this is a temporary phase. We remain fully committed to long term wealth creation and are actively evaluating all possible alternatives to mitigate any potential impact,” promoter Liberatha Kallat said.
Published on July 5, 2025