Adani Group Considers Entry Into Indian Airline Market

The Adani Group is considering entering the Indian aviation sector by launching a new airline or purchasing a stake in an existing carrier. This potential move aims to challenge the current market duopoly held by IndiGo, which controls 65.4 percent of the domestic market, and Air India, which holds 25 percent.

The strategic shift follows private encouragement from the Government of India. The central government has nudged business groups to enter the sector to improve stability and competition, particularly after a fatal Air India crash in Ahmedabad and significant operational disruptions at IndiGo in December 2025. Sources describe the potential entry as being in the national interest.

To facilitate this transition, the group has requested that the government dilute regulations that currently prohibit airport operators from holding stakes in scheduled airlines. The Ministry of Civil Aviation is expected to seek legal counsel regarding these amendments. While internal discussions are in the early stages and no final decision has been made, the group is reportedly exploring an aircraft manufacturing partnership with Brazilian plane maker Embraer S.A.

This direction marks a reversal for the conglomerate, which already operates eight airports in India. Director Jeet Adani had previously dismissed the airline business, citing thin profit margins and a lack of alignment with the group's focus on hard assets.