IndiGo Managing Director Rahul Bhatia on Thursday opposed any move to allow airport operators to own and operate airlines, saying such an arrangement would create a “massive conflict of interest” and has no parallel anywhere in the world, according to ANI.
Speaking during IndiGo’s investor call, Bhatia said airport operators are responsible for allocating key infrastructure, including airport slots, parking bays and other operational facilities, and therefore should not be allowed to run airlines.
“No global precedent of airport operators owning airlines. Massive conflict of interest if airport operators are allowed to own airlines,” he said, according to ANI.
Remarks come amid reports of possible policy changes
Bhatia’s comments come against the backdrop of media reports suggesting that airport operators GMR Group and the Adani Group are exploring the possibility of entering the airline business.
According to the reports, doing so would require changes to the existing regulatory framework, which currently restricts operators of the Delhi and Mumbai airports from holding more than a 10 per cent stake in a scheduled airline.
The reports also said the government is examining whether the existing provision can be amended and has sought legal opinion on the matter. Any change to the rules would require Cabinet approval.
No official proposal announced so far
Neither the Centre nor the airport operators have officially announced any proposal to amend the current ownership rules.
The possibility of changes to the regulatory framework has so far been reported by the media, citing government sources and company executives.
Bhatia maintained that permitting airport operators to own airlines would create a conflict because the same entities would control access to critical airport infrastructure while also competing with other carriers operating from those airports.