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Government to Assess Airport Operators’ Airline Ownership Proposal, Says Aviation Minister Rammohan Naidu
The government is weighing a rule change as India seeks more airlines in a market where IndiGo and Air India hold over 90% combined share.
- On Tuesday, Civil Aviation Minister K. Rammohan Naidu said the government is weighing the "pros and cons" of allowing airport operators to own airlines, though no final decision has been made on the proposal.
- Adani Airport Holdings sought a waiver from the Airports Authority of India regarding the "operation, management and development agreement," which restricts airport operators from holding more than 10% stake in an airline.
- IndiGo and Air India currently control over 90% of the domestic market; Naidu said India should aim for more than 350 airports to meet rising travel demand.
- Managing Director Rahul Bhatia warned in July that allowing airport operators to own airlines will create a "massive conflict of interest" and be "against the interest of consumers."
- Naidu stated the government must take a "balanced approach" to the proposal, noting that while supporting more airline options for passengers, officials must carefully deliberate on airport-airline integration implications.
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Govt to examine Adani airline plan cautiously over airport-airline conflict: Report
Adani Airports CEO Arun Bansal wrote to the government in June saying that Adani Defence & Aerospace was considering starting an airline as an extension of the group's existing aviation business, the report mentioned.
·Noida, India
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Govt Deliberates Allowing Airport Operators to Own Airlines Amid Conflict of Interest Concerns
Civil Aviation Minister Kinjarapu Rammohan Naidu stated that no decision has been made regarding allowing Delhi and Mumbai airport operators to own and run airlines, as the government is carefully considering the implications of relaxing cross-ownership restrictions, including potential conflicts of interest and the need for more airlines.
Coverage Details
Total News Sources13
Leaning Left2Leaning Right6Center2Last UpdatedBias Distribution60% Right
Bias Distribution
- 60% of the sources lean Right
60% Right
L 20%
C 20%
R 60%
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