Government Clarifies Policy on Airport Operators Running Airlines

The Indian government has clarified that there is no policy preventing major airport operators from owning or running scheduled airlines. However, certain Public Private Partnership agreements restrict these operators. Recent requests for waivers could change this landscape, as major groups deny rumors of entering the airline sector.

In a recent session at the Rajya Sabha, Murlidhar Mohol, the Union Minister of State for Civil Aviation, clarified that the Indian government does not have a policy restricting major airport operators from investing in or running scheduled airlines.

The Minister emphasized, however, that some existing agreements, particularly those developed under the Public Private Partnership (PPP) model, include provisions that prevent scheduled airlines and their associated entities from owning shares in airport operations. This comes in light of a request received by the Airports Authority of India (AAI) seeking a waiver of these contractual restrictions.

Notably, the clarification follows reports suggesting that prominent airport operators like the GMR Group and Adani Group are looking to enter the airline business. However, Adani Group has firmly denied these claims, labeling them as "false" and "baseless," reaffirming that they have no plans to venture into the airline industry.