India Considers Allowing Airport Operators to Own Airlines

The Ministry of Civil Aviation is conducting preliminary discussions to relax regulations that currently prohibit major airport operators from holding more than a 10% stake in any airline. The proposed change aims to increase market competition in India, where IndiGo and Air India control nearly 90% of domestic capacity. Any formal waiver would require legal clearance from the Law Ministry and approval from the Union Cabinet led by Prime Minister Narendra Modi.

Potential beneficiaries of the move include the Adani Group, which operates the Mumbai airport and seven others, and GMR Airports Ltd, which manages the New Delhi airport. Reports indicate the Adani Group has sought government approval to amend these norms to potentially launch its own airline.

InterGlobe Aviation officials strongly oppose the move. Managing Director Rahul Bhatia warned that allowing operators to own airlines would create a massive conflict of interest and eventually harm consumers. Chief Financial Officer Gaurav Negi added that separating airports and airlines is a long-standing global regulatory principle. The government has stated that no formal proposal has been submitted and that discussions remain preliminary as it examines whether the shift could foster a new major player in the aviation market.