Negotiation Power: The Defining Factor in India's Airline Sector Duopoly

Adani Group's Jeet Adani stated that duopoly in the airline sector poses no threat to airport operators as long as they possess negotiating power. Despite IndiGo and Air India Group commanding over 90% market share, Adani emphasized equal negotiation power. Adani Group operates seven airports, including Mumbai's, tackling slot challenges.

The presence of a duopoly in India's airline sector, led by IndiGo and Air India Group, which together hold over 90% of the market, doesn't alarm airport operators as long as they maintain negotiating power, according to Jeet Adani, director of Adani Group's airport business.

Jeet Adani explained that even though recent turbulence in the sector, including IndiGo's near-collapse and a subsequent rise in airfares, raises questions about the market's health, airport operators remain unfazed due to balanced negotiating dynamics with the airlines.

As the Adani Group operates seven airports, including the high-demand Mumbai airport, and prepares to launch the Navi Mumbai airport in December, the focus remains on overcoming slot allocation challenges while navigating ongoing legal proceedings about aeronautical tariffs.

(With inputs from agencies.)