Adani Denies Plans to Enter Airline Business, Calls Media Reports Baseless!

Recent media reports claimed that the Centre is considering changes to its aviation policy to allow airport operators in the country to enter the airline business. If the existing policy is amended, major airport developers such as the Adani Group and GMR Airports would be able to venture into the airline sector. Under the current regulations, companies operating major airports such as Mumbai and Delhi are not allowed to hold more than a 10 percent stake in an airline. Media reports also suggested that the proposed policy changes were being made specifically to benefit the Adani Group and that the company had written to the Centre seeking such amendments. However, Adani Enterprises has now responded to these reports, dismissing them as baseless. The company clarified that there is no truth whatsoever in the media reports and described them as unfounded. Adani Enterprises also made it clear that it is not considering any proposal to enter the airline business.

According to reports, the Centre believes that allowing airport operators to enter the airline sector would increase competition in the market and help curb the dominance of IndiGo and Air India, which together account for nearly 90 percent of the domestic aviation market. The Adani Group currently operates eight airports across the country, while the GMR Group manages five airports in India. IndiGo, which holds the largest market share in the country, has opposed the Civil Aviation Ministry's proposed policy changes. IndiGo Co-founder and Managing Director Rahul Bhatia said that allowing airport operators to run airlines could create a conflict of interest. The Centre's final decision on the proposed policy changes is expected to become clear in the coming days.