India's largest airline, IndiGo, has voiced strong opposition to the Adani Group's reported aspirations to enter the airline business. Rahul Bhatia, IndiGo's founder and Managing Director, stated that any such move would create a "massive conflict of interest" for consumers, given Adani's substantial presence in airport operations.
Adani Group's Reported Aviation Ambitions
Reports suggest that the Adani Group is seeking amendments to an existing government clause. This regulation currently restricts airport operators in major hubs like Delhi and Mumbai from holding more than a 10% stake in a scheduled airline. The Adani Group operates several key airports across India, making this clause a significant hurdle for any direct airline venture.
IndiGo's Conflict of Interest Concerns
Speaking during IndiGo's Q1FY27 earnings call, Bhatia emphasized that allowing an airport operator to own an airline would set a dangerous precedent. "There is no global precedent. Typically, there is a massive conflict of interest, and over a period it will be against the interest of the consumers," Bhatia asserted.
The core of IndiGo's concern lies in the potential for unfair advantage. An entity controlling airport infrastructure could theoretically prioritize its own airline's slots, services, or pricing, disadvantzing competing carriers and potentially leading to reduced choices and higher costs for passengers.
Government's Stance and Future Outlook
Sources within the civil aviation ministry have indicated that while the issue of amending these concession agreements has been informally discussed, no formal proposal has yet been submitted to the government. The discussions reportedly stem from the significant evolution of the aviation market over the past two decades since these agreements were initially drafted.
Should the government consider amendments, there's a possibility that any new policy might still cap the shareholding an airport operator could hold in an airline, aiming to mitigate potential conflicts. IndiGo's management has stated that any future decisions regarding their own potential entry into airport operations would depend on how this matter unfolds.