The Indian airline IndiGo has opposed a proposed change that would allow airport operators in India to own and manage airlines. Rahul Bhatia, CEO and promoter of India's largest carrier, stated after a conference call following the earnings report that such an initiative lacks global precedent, raises serious concerns about conflicts of interest, and it is unclear how it will serve consumer interests.
Bhatia's comments came amid the government considering easing restrictions preventing Delhi and Mumbai airport operators from owning more than 10% of shares in a scheduled airline. It is anticipated that the Adani group, which manages the Mumbai airport, will take the first steps by acquiring a stake in an existing airline or investing in a startup. The GMR group, which manages the IGIA airport in Delhi, may do so at a later stage.
This news led to a drop in InterGlobe Aviation's shares for two consecutive days, as investors view the airline, which controls two-thirds of the domestic aviation market, as a potential loser if this proposal is implemented.
Senior officials from the Ministry of Civil Aviation noted that a country with India's economic potential should have many airlines, not be limited to a duopoly between IndiGo and Tata's Air India group.
Meanwhile, the Competition Commission of India (CCI) requested public comments on Thursday regarding IndiGo's proposal as part of an investigation following the company's schedule disruption in December. IndiGo proposed temporarily releasing domestic slots at airports. According to the CCI notification, after such a transfer, the airport operator or body could independently determine the reallocation of such slots and dates for routes at its discretion.
Adani Enterprises stated that it is not considering any plans to enter the air transport business, dismissing recent media rumors and market speculation.
The company reported in documentation submitted for information exchange that it 'is not evaluating any proposals to enter the aviation business,' thereby rejecting reports that it intended to expand into commercial aviation. The company categorically denies recent media reports and market speculations suggesting plans to launch an airline, calling these reports entirely unfounded and factually incorrect.
This clarification followed reports that Adani Group was studying the possibility of changing existing regulations that limit the ownership of Delhi and Mumbai airport operators to 10 percent of the share capital of a regular airline. Although the group has ruled out plans to create its own airline, it already has a significant presence in India's aviation sector through its airport business.
Furthermore, Adani Group continues to expand its airport business. Last month, Adani Airports announced plans to invest over $2 billion in commercial development related to airports in six locations across India. These projects will include hotels, retail spaces, and office complexes as part of a broader strategy to create business hubs around airports.
The group began operating in the airport business in 2019 and currently manages eight airports across India through Adani Enterprises. These include the airports in Mumbai, Jaipur, and Tiruvannamalai. Adani Enterprises is also involved in road construction, real estate, and infrastructure.
Adani Ports is one of the largest private port operators by cargo volume in India. It administers 15 ports across the country, including Mundra Port in Gujarat, which is India's busiest private port. In May, the group also partnered with Uber to create the first taxi data center in India. Previously, in February, Adani Group announced plans to invest $100 billion by 2035 to build AI-ready and renewable energy-powered data centers. This investment is part of a wider effort by several companies to strengthen India's position in the global artificial intelligence sector.
