Adani Group Seeks Rule Change to Clear Path for Airline Venture

Adani Group has approached the government seeking to dilute a clause restricting certain airport operators from owning stakes in planned airlines, media reported on Thursday, citing government officials and company executives; This is a move that will allow the conglomerate to establish its own airline.

Adani Group and India’s civil aviation ministry did not immediately respond to requests for comment from Reuters.

More details from the report:

– The report stated that the article prohibits operators of New Delhi and Mumbai airports from owning more than 10% stake in a scheduled airline.

– The government seeks the opinion of the Attorney General on whether the article can be amended retroactively and whether any changes will require cabinet approval.

– Adani operates eight airports in India, including Mumbai airport, in which it owns a 74% stake.

– The government sees a well-financed new entrant as a way to increase competition in the domestic market, where IndiGo and Air India (AIRID.UL) together control about 90% of the market, the report said.

Rival airlines are expected to oppose the proposal due to concerns about disputes over airport slot allocation, the newspaper said.