Adani Group has clarified that its June representation to the government was intended to strengthen India’s regional aviation ecosystem and should not be interpreted as a precursor to launching an airline, dismissing recent media reports that suggested the conglomerate was exploring an aviation venture.
Speaking to analysts after Adani Enterprises’ Q1 FY27 earnings on Tuesday, Group CFO Jugeshinder Singh said the company’s interest in regional aviation stems from its position as one of India’s largest airport operators and its belief that stronger regional connectivity is essential for the long-term growth of the country’s airport network.
“The next round of airport privatisation will be regional airports. Our current ability to support an airline business is by up to 5% equity. We put a letter, that we want to see, as owners of airports and regional airports hopefully in the future, that India’s regional airline system also develops and develops properly,” Singh said.
He stressed that the representation should not be viewed as an indication of Adani Enterprises entering the airline business.
“The context is not about starting an airline but to support the development of an airline for regional connectivity and this is our interest. AEL has no interest in the airline business and we have clarified that. We are focused on our airports business,” he said.
His remarks come after reports suggested the Gautam Adani-led group was evaluating an entry into commercial aviation, prompting Adani Enterprises to issue a denial earlier.
Focused on Infrastructure Policy
Singh said the June letter was simply an attempt by an infrastructure developer to advocate policies that would strengthen regional connectivity, which would ultimately benefit the broader transport and logistics ecosystem.
“It is in our interest to see the development of regional transportation infrastructure and if we try to advocate for support that infrastructure in some way, does not mean we will start running an airline. People tend to see this as an immediate action, which it is not,” he said.
He added that the group’s interest is driven by its presence across transport infrastructure businesses, including ports, roads and airports. “It is in our interest as an actor in transport and logistics, ports, roads and airports to make sure the regional connectivity and regional economy develops properly,” Singh said.
Strategic Timing Ahead of Privatisation
The clarification assumes significance as the Centre prepares the next phase of airport privatisation, which is expected to include 11 airports such as Amritsar, Kangra, Gaya, Kushinagar, Varanasi, Aurangabad, Raipur, Bhubaneswar and Hubli.
Meanwhile, Adani’s airports business posted a strong operational performance in the June quarter. Revenue rose 39% year-on-year to Rs 3,763 crore, while passenger traffic increased 3% to 24.2 million. Air traffic movements grew 4% to 160,400 during April-June.
The business, however, reported a loss of Rs 194 crore during the quarter, compared with a profit before tax of Rs 204 crore in the corresponding period last year. Adani Airport Holdings operates Mumbai, Navi Mumbai, Ahmedabad, Lucknow and four other airports across the country.