India Weighs Letting Airport Owners Adani, GMR Run Own Airlines to Curb Duopoly
The proposal would ease ownership limits and could let Adani Group and GMR Airports launch carriers as IndiGo and Air India hold nearly 90% of capacity.
- On Wednesday, India initiated policy discussions that could allow airport operators to own and run airlines, potentially clearing a path for the Adani Group and GMR Airports Ltd. to enter the sector.
- Market concentration prompted the move, as IndiGo and Air India control nearly 90% of domestic capacity; concerns intensified after IndiGo's operational crisis last December caused thousands of flight cancellations.
- Current rules bar operators of airports in Delhi and Mumbai from holding more than 10% stake in airlines, while regulations prevent reciprocal ownership despite Tata Group-owned Air India's interest in airport investments.
- Any waiver requires clearance from the law ministry and approval from the Union Cabinet led by Prime Minister Narendra Modi, though aviation analysts caution that cross-ownership could create risk concentration.
- Internationally, airport-airline joint ownership has achieved limited commercial success, hindered by antitrust enforcement; meanwhile, India plans to double airports to 350 by 2047 to support 425 million additional passengers.
22 Articles
22 Articles
IndiGo Co-Founder: Airport-Airline Ownership Is a 'Massive Conflict of Interest'
If the idea is to break the two-airline duopoly, the irony is hard to miss. India could end up replacing airline concentration with something even more powerful — a conglomerate that controls the skies, the gates, and everything in between.
IndiGo MD Says Airport Operators Owning Airlines Would Create 'massive Conflict of Interest'
Get latest articles and stories on Business at LatestLY. IndiGo Managing Director Rahul Bhatia on Thursday said allowing airport operators to own and operate airlines would create a "massive conflict of interest", saying there is no global precedent for such a model. Business News | IndiGo MD Says Airport Operators Owning Airlines Would Create 'massive Conflict of Interest'.
Adani considers foray into airline business, Centre mulls allowing airport operators to run airlines
The Adani Group is weighing entry into India’s airline sector as the government considers easing cross-ownership rules to boost competition, potentially allowing airport operators like Adani to run carriers.
India Weighs Letting Airport Owners Run Airlines to Curb Duopoly
Coverage Details
Bias Distribution
- 62% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
