Adani Enterprises Denies Plans to Launch New Airline

Reports surfaced in July 2026 that the Adani Group was considering launching a new airline to challenge the domestic market duopoly held by IndiGo and Air India. To achieve this, the conglomerate reportedly approached the Government of India to request a dilution of 2006 privatization agreements that restrict airport operators from owning more than a 10 percent stake in scheduled airlines. This move was linked to plans to establish an aircraft manufacturing facility with Embraer S.A. to secure orders for planes.

IndiGo Managing Director Rahul Bhatia opposed the potential policy shift, stating it would create a massive conflict of interest and that no global precedent exists for airport operators owning airlines. The opposition coincided with a two-day decline in Interglobe Aviation shares as investors worried about the impact of such regulatory changes.

On July 24, 2026, Adani Enterprises issued a categorical denial, describing the media reports and market speculation as entirely baseless and factually incorrect. While the Indian government had reportedly encouraged business groups to enter the sector to increase competition, Adani Enterprises maintained it is not evaluating any proposal to enter the airline business. Separately, Adani Defence & Aerospace signed an agreement with the Defence Research and Development Organisation to develop a next-generation Airborne Early Warning & Control system for the Indian Air Force.