Arun Bansal, CEO of Adani Airport Holdings Ltd (AAHL), has publicly stated that India requires a third strong national airline to complement existing carriers IndiGo and Air India. Speaking at the Aviation India Summit, Bansal's remarks have intensified discussions regarding the Adani Group's potential foray into the airline business.
Despite previous denials from the Adani Group regarding its interest in operating an airline, the conglomerate, which is already India's largest private airport operator, has reportedly approached the government. Their aim is to seek a relaxation of current regulations that restrict airport operators in Delhi and Mumbai from holding more than a 10% stake in a scheduled airline.
This regulatory hurdle has been cited by Jeet Adani, director at AAHL, who previously stated that while nothing is off the table, legal restrictions currently prevent their entry. The proposed rule change, if approved, could pave the way for Adani's direct involvement in airline operations.
Such a move would significantly alter India’s competitive aviation landscape, potentially challenging the market dominance currently held by IndiGo and Air India. IndiGo founder Rahul Bhatia has voiced concerns that allowing airport operators to own airlines could create a conflict of interest and ultimately harm consumer interests.
The discussion highlights a pivotal moment for India's rapidly expanding aviation market, as stakeholders debate the implications of new entrants and regulatory adjustments.