The Adani Group has denied having any plans to launch its own airline. The clarification came amid growing speculation that major airport operators GMR Group and the Adani Group were seeking approval to enter the airline business. Current regulatory framework bars the operators of New Delhi and Mumbai airports from holding more than a 10% stake in a scheduled airline.
“We would like to categorically deny the recent media reports and market speculation suggesting that Adani Enterprises is planning to launch an airline. These reports are entirely baseless and factually incorrect. Adani Enterprises is not evaluating any proposal to enter the airline business,” a spokesperson for Adani Enterprises said.
The statement, however, comes mere hours after a company spokesperson told Financial Express Digital that Adani Group was pursuing changes to the existing rules governing airport operators’ ownership of scheduled airlines. News agency Reuters had also quoted sources to add that no final decision had been made on the matter. The publication added that Adani Group was still weighing the idea since aviation is considered a rather risky sector where it can be difficult to make money.
‘Massive conflict of interest’: IndiGo MD
IndiGo Managing Director Rahul Bhatia said on Thursday that allowing airport operators to own and operate airlines would create a “massive conflict of interest” if the news was true. He told investors during a call that there was no global precedent for such a model — while indicating that the domestic carrier would adopt a wait and watch approach.
“No global precedent of airport operators owning airlines. Massive conflict of interest if airport operators are allowed to own airlines,” ANI quoted him as saying.
Bhatia noted that allowing airport operators to own airlines would create a conflict of interest, as airport operators are responsible for allocating critical infrastructure such as airport slots, parking bays and other operational facilities to airlines.
Aviation duopoly
The massive IndiGo flight cancellations fiasco had prompted government discussions about breaking the current duopoly. Civil aviation Minister Ram Mohan Naidu and other key leaders had suggested in late December 2025 that India required at least five airlines with nearly 100 planes each to avoid such a crisis in the future.
Officials told Financial Express earlier this week that India was now discussing a policy change that would allow airport operators to run airlines. This could pave the way for the Adani Group and GMR Airports Ltd. to have their own carriers if such a plan materialises in the future.
Current rules bar the operators of airports in Delhi and Mumbai from owning more than 10% stake in any airline. The official noted that the proposal remains at a preliminary stage and would require legal vetting and Cabinet approval.
“India needs more airlines and more competition. The objective is to create an enabling environment for financially strong investors to enter the sector. Airport operators are among the stakeholders who could benefit if the cross-holding restrictions are revisited,” a senior government official told FE on Tuesday.
Significant risks
An aviation foray would have been one of the boldest (or perhaps riskiest) bets taken on by the second-richest person during his marquee career. High taxes, fierce competition and supply-chain snags have driven Indian airlines Kingfisher, Jet Airways and Go First into bankruptcy over the last 15 years. Air India has churned out a string of loss-making years while IndiGo faced its own share of troubles over the past year due to flight cancellations.
It has also become an increasingly turbulent time for aviation companies across the world amid skyrocketing fuel prices and airspace closures due to the Iran war. The industry is also facing global supply chain constraints that have delayed cabin refurbishments and new aircraft deliveries for many.
