Will Adani and GMR Launch Airlines? Centre Mulls Major Aviation Policy Change!

Adani Group and GMR Airports Limited are currently the two largest airport operators in India. Adani Group operates eight airports across the country, while GMR Airports manages five. Adani Group's portfolio includes Mumbai Airport, the country's financial capital, along with airports in Ahmedabad, Lucknow, Guwahati, Thiruvananthapuram, and Mangaluru. GMR Airports operates Delhi Airport, the national capital's airport, besides Hyderabad, Goa (Mopa), Nagpur, and the newly developed Bhogapuram Greenfield International Airport in Andhra Pradesh. Under the existing regulations, companies operating major airports such as Mumbai and Delhi are not permitted to hold more than a 10 percent stake in any airline. At present, nearly 90 percent of India's domestic aviation market is controlled by just two carriers—IndiGo and Air India.

According to reports in the national media, the Ministry of Civil Aviation is discussing the removal of these ownership restrictions on airport operators to encourage greater competition in the aviation sector, as the market is largely dominated by the two airlines. If the Centre implements the proposed policy changes, companies such as Adani Group and GMR Airports could become eligible to launch their own airlines. However, the proposal would require approval from the Ministry of Law as well as the Union Cabinet, according to official sources.

There is also a debate that any such policy change by the Centre would primarily benefit the Adani Group. Even if the policy is amended, it remains uncertain whether Adani Group or GMR will actually enter the commercial airline business. The proposed changes would only remove the regulatory hurdle and enable them to establish airlines if they choose to do so. Experts believe that the limited number of airlines operating in India has become a constraint to the growth of the country's aviation sector. Meanwhile, the Modi government has set a target of increasing the number of airports in India to 350 by 2047.