The Civil Aviation Ministry on Monday told the Rajya Sabha that there is no government policy preventing operators of major airports from operating scheduled airlines or holding equity in them. However, contractual agreements governing some airports under the public-private partnership (PPP) model restrict scheduled airlines and their group entities or associates from holding equity in airport concessionaires.
Minister of State for Civil Aviation Murlidhar Mohol said the Airports Authority of India (AAI) had received a request seeking a waiver from such contractual restrictions, but the ministry had not yet examined the request.
Mohol was responding to a written question from CPI(M) MP John Brittas, who had asked whether the government was considering amending or relaxing the existing provisions restricting major airport operators from holding substantial equity in or operating scheduled airlines.
“There is no such government policy restricting operators of major airports from holding substantial equity in or operating scheduled airlines,” Mohol said. “However, the extant contractual agreements relating to some airports under Public Private Partnership (PPP) contain certain restrictions on scheduled airlines and their group entities or associates from holding Equity Share of the Concessionaires.”
The government’s response assumes significance amid reports that Adani Airports had written to the AAI seeking a waiver that could allow the group and its affiliates to invest in and own a scheduled airline.
On July 24, Adani Enterprises, which owns Adani Airport Holdings, denied reports that it was planning to enter the airline business.
“We would like to categorically deny the recent media reports and market speculation suggesting that Adani Enterprises is planning to launch an airline. These reports are entirely baseless and factually incorrect,” an Adani Enterprises spokesperson had said.
The issue resurfaced on Sunday after Trinamool Congress MP Mahua Moitra shared a letter purportedly written by Adani Airports to the AAI on June 2, 2026. The letter reportedly seeks a waiver from restrictions that would allow the group and its affiliates to invest in a scheduled airline.
“With more than 300 million+ additional passengers expected to join the ranks of Indian air travellers over the next decade, there is a compelling national interest in encouraging the emergence of additional strong and well-capitalized airline operators capable of supporting India's aviation growth story,” the letter said. It added that Adani Defence & Aerospace had been evaluating participation in the airline business as an extension of the group’s presence in the aviation ecosystem.
Brittas also asked whether the government had assessed the potential impact of such cross-ownership on competition, slot allocation and airport charges, and whether the views of the Competition Commission of India, the Directorate General of Civil Aviation (DGCA) and the AAI had been sought. The ministry's response did not provide details on these aspects.
The issue has also drawn concern from airline operators. Last month, Rahul Bhatia, co-founder and managing director of IndiGo, said allowing airport operators to own airlines could create a significant conflict of interest and, over time, work against consumer interests.
