The government is weighing whether to allow airport operators such as the Adani Group, which runs Mumbai Airport, to also operate an airline, though no final call has been made.
The Delhi and Mumbai airports were handed over under public-private partnerships in 2006, and the “operation, management and development agreement” (OMDA) governing them caps an operator’s stake in any airline at 10%. Adani Group has recently asked for this cap to be relaxed.
Minister: pros are clear, cons need a framework
Speaking on Tuesday, civil aviation minister Ram Mohan Naidu said the government wants more airlines given India’s expanding airport network and rising travel demand, with an ambition of having at least five airlines each operating 100-plus aircraft. He said the government has no objection to new entrants launching airlines in general — the sticking point is specifically about airport operators, like those running Delhi and Mumbai, doing so, and officials are still studying the implications.
He clarified that no decision on Adani’s request has been made yet, and noted that outside the OMDA restriction on Delhi and Mumbai, there’s no rule elsewhere barring airport operators from running airlines — including private operators like Bengaluru’s BIAL. Because of this gap, he said the ministry wants to design a system that addresses potential downsides while preserving the benefits before moving forward.
The Adani proposal has split opinion in the airline industry, with IndiGo’s Rahul Bhatia against it and Akasa Air founder Vinay Dube supportive.
UDAN expansion announced
Speaking at a UDAN scheme event, Naidu said the aviation ministry, Airports Authority of India, and 21 states and union territories have signed MoUs to prioritize speed, sustainability and long-term project viability in the scheme’s next phase, with 100 airports slated for development under a “challenge mode” over the next decade
