India’s two largest airlines, IndiGo and Air India, have voiced strong opposition to the Adani Group’s reported plans to enter the airline business, expressing concerns over conflicts of interest and the impact on competition in the aviation sector.
The objections come amid reports that the Adani Group has approached the Centre to remove existing cross-ownership restrictions that prevent airport operators from owning airlines and vice versa. The conglomerate currently operates several major airports across India, making its proposed expansion into aviation a contentious issue.
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Speaking during an analyst call after the airline’s quarterly results, IndiGo Managing Director Rahul Bhatia said there was virtually no international precedent for such a model. He argued that allowing an airport operator to also own an airline would create a significant conflict of interest and could ultimately work against consumer interests.
Air India echoed similar concerns. A senior airline official said combining airport operations with airline ownership would concentrate too much power within a single corporate group, potentially disadvantaging competing carriers. According to the official, such vertical integration could reduce market competition, limit consumer choice and even affect employment across the aviation industry.
Critics believe an airport operator with its own airline could influence slot allocation, airport charges and operational priorities in ways that favour its carrier over rivals. Such a scenario, they argue, could distort fair competition and make it harder for other airlines to compete on equal terms.
The reported proposal has reignited debate over India’s aviation ownership rules, which were designed to prevent conflicts of interest and ensure a level playing field. Any move to relax these restrictions would require careful regulatory scrutiny, given the potential implications for airlines, airports and passengers alike.
While the government has not announced any decision on the reported proposal, the issue is expected to generate significant discussion within the aviation industry, with stakeholders closely watching whether the current ownership framework remains unchanged or undergoes reform.
