Airport operators can run airlines? Govt clarifies

Published 10 August 2026 · politics

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Live Events as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Centre on Monday said there is no government policy restricting major airport operators from holding substantial equity in or operating scheduled airlines.The clarification comes as the Airports Authority of India (AAI) has received a request seeking a waiver from contractual restrictions that could allow an airport operator to enter the airline business.Minister of State for Civil Aviation Murlidhar Mohol gave the response in Rajya Sabha on Monday to an unstarred question by CPI(M) MP John Brittas on cross-ownership between airports and airlines.“There is no such Government Policy restricting operators of major airports from holding substantial equity in or operating scheduled airlines.

However, the extant contractual agreements relating to some airports under Public Private Partnership (PPP) contain certain restrictions on scheduled airlines and their group entities/associates from holding Equity Share of the Concessionaires,” the government said.The ministry also confirmed that AAI had received a request seeking a waiver of the relevant agreement provision. However, it said the request has not yet been examined.“Request seeking waiver of the relevant agreement provision has been received by Airports Authority of India (AAI). The matter has not yet been examined by the Ministry of Civil Aviation,” the government said.The response comes amid questions over Adani Group’s reported interest in entering the airline business. A purported June 4 letter from Adani Airports to AAI, shared by TMC MP Mahua Moitra on X, showed the airport operator seeking a waiver that would allow Adani Defence & Aerospace and its affiliates to invest in, establish, acquire, own, promote or control a scheduled airline in India.The Economic Times had earlier reported on Adani Group’s interest in entering the airline business.

Adani Enterprises later said reports that it was evaluating an airline business were “entirely baseless and factually incorrect” and that it was not evaluating any proposal to enter the airline business.The issue has also drawn concern from incumbent airlines. IndiGo Managing Director Rahul Bhatia had said that allowing airport operators to own airlines would create a “massive conflict of interest” and could hurt

consumers.Government officials, however, have indicated that any change could include safeguards requiring operational separation between airport and airline businesses, including restrictions on sharing commercially sensitive information and common management.The Adani Group is India’s largest private airport operator, managing eight airports, including Mumbai International Airport. It is also developing Navi Mumbai International Airport and has expanded its presence across several parts of the aviation sector.