India clarifies no policy bars airport operators from owning airlines

The Indian government has clarified that there is no general policy prohibiting major airport operators from owning significant equity in or operating scheduled airlines. This statement was made by Minister of State for Civil Aviation Murlidhar Mohol in the Rajya Sabha.

While no overarching policy exists, Mohol noted that certain existing contractual agreements under Public-Private Partnership (PPP) models contain specific restrictions. These provisions prevent scheduled airlines and their group entities from holding equity in airport concessionaires. The Airports Authority of India (AAI) has received a request for a waiver regarding these contractual provisions, though the Ministry of Civil Aviation has not yet examined the matter.

The clarification follows reports that the Adani Group, which operates eight airports in India, may be seeking to enter the airline sector. While Adani Enterprises has previously denied plans to launch an airline, calling such reports ‘entirely baseless and factually incorrect’, the possibility of cross-ownership has raised concerns among existing carriers. IndiGo Managing Director Rahul Bhatia has warned that allowing airport operators to own airlines could create a ‘massive conflict of interest’ regarding competition and infrastructure access.