Conflict of Interest Concerns: IndiGo's MD Opposes Airport Operators Entering Airline Business

IndiGo MD Rahul Bhatia criticized potential moves allowing airport operators to own airlines, highlighting an inevitable conflict of interest. He noted a lack of global precedent and expressed resistance to regulatory changes that would permit companies like GMR and Adani to enter the airline sector.

IndiGo Managing Director Rahul Bhatia voiced strong opposition on Thursday to the idea of airport operators owning and managing airlines, citing it as a substantial conflict of interest. Speaking during an investor call, Bhatia pointed out that no global precedent exists for such an arrangement, questioning the integrity of operational allocations such as airport slots and parking bays if such ownership is allowed.

Currently, media reports suggest that major airport operators, including the GMR and Adani Groups, are showing interest in entering the airline industry. Such a move would require alterations to the existing regulatory framework, which limits New Delhi and Mumbai airport operators from holding more than a 10% stake in any scheduled airline.

As discussions about possible policy changes surface, including evaluations by the government and legal consultations, official announcements remain absent. Reports indicate that the proposed changes are still in preliminary stages and would necessitate Cabinet approval before any formal measures are taken, according to sources and company executives cited in media outlets.