Adani Denies Airline Plans Even as It Seeks Relaxation of Airport-Airline Ownership Rules
The Wire Staff
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Mangaluru: The Adani Group has approached the Indian government with a proposal to relax a key restriction that bars operators of Delhi and Mumbai airports from holding significant stakes in scheduled airlines, the Economic Times has reported.
Adani Enterprises has, however, categorically denied any plans to launch its own carrier. On July 24, Adani Enterprises issued a formal statement and regulatory filing rejecting media speculation: “We would like to categorically deny the recent media reports and market speculation suggesting that Adani Enterprises is planning to launch an airline. These reports are entirely baseless and factually incorrect. Adani Enterprises is not evaluating any proposal to enter the airline business.”
In a letter sent in June, the CEO of Adani Airports Holdings reportedly urged authorities to waive clauses restricting cross-ownership between airports and airlines. The communication, according to media reports, highlighted the potential for a “next-gen airline” linked to the group’s operations and pointed to risks posed by the current duopoly in Indian aviation, referencing IndiGo’s operational challenges in December.
The existing rule, part of the privatisation agreements for Delhi and Mumbai airports signed in 2006, limits operators to no more than a 10% stake in any scheduled airline.
The proposal has drawn sharp criticism from existing players. IndiGo Managing Director Rahul Bhatia described allowing airport operators to own airlines as a “massive conflict of interest” with no global precedent, warning it could ultimately harm consumers through biased slot allocation and infrastructure access.
Government officials are examining the legality of amending this provision retrospectively, with any change requiring Cabinet approval. The ministry has sought legal opinions on the matter.
Adani Group, India’s largest private airport operator, manages eight airports – including a majority stake in Mumbai International Airport – and has built a presence across the aviation value chain through pilot training, aircraft maintenance and repair, ground handling, and a planned aircraft manufacturing facility in partnership with Brazil’s Embraer.
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