The government is reportedly considering a policy change that could allow airport operators to own and run airlines. This shift could enable companies like the Adani Group and GMR Airports Ltd. to start their own carriers, according to sources familiar with the matter.
According to a report in Bloomberg, the Ministry of Civil Aviation is discussing the proposal, which would need legal approval from the law ministry and the Union Cabinet led by Prime Minister Narendra Modi. Currently, operators of Delhi and Mumbai airports are restricted from owning more than a 10% stake in any airline.
The aim of the proposed change is to increase competition in India’s aviation market, where IndiGo and Air India hold nearly 90% of domestic capacity, the report added. However, there are concerns that airport operators might favour their own airlines in areas such as prime airport slot allocation.
If ownership limits are relaxed, the Adani Group, which runs Mumbai airport and seven others, and GMR Airports, which manages Delhi airport and four others, could own airlines, it said.
The move comes after a decade of increasing concentration in India’s airline industry, marked by the collapse of Jet Airways and Go Airlines India, and the merger of Vistara and AirAsia India under the Tata Group. While newer airlines like Akasa Air, SpiceJet, and smaller regional carriers operate, IndiGo and Air India dominate the market.
India plans to expand its airport network to 350 airports by 2047. The International Air Transport Association projects an additional 425 million passengers by 2044, nearly tripling passenger numbers from 2024 levels.
