The US government has raised objections to the Adani Group’s plan to shift cargo carriers from Mumbai’s main airport to its upcoming facility in Navi Mumbai, Bloomberg reported sources.
According to the Bloomberg report, the move could escalate into a bilateral aviation dispute.
US cites treaty violations
According to Bloomberg, the US Department of Transportation (DOT) wrote to India’s civil aviation ministry in March, arguing that the proposed relocation of freighter operations, including those of FedEx may violate the US-India Air Transport Agreement.
The DOT warned that any move forcing American carriers to relocate could trigger adverse action under the bilateral treaty, the report said, citing unnamed sources.
Financialexpress.com could not independently verify this report. We have reached out to the company, the story will be updated once we hear from them.
Adani’s phased relocation plan
The concerns follow a directive by Adani Airport Holdings to shift cargo operations from Chhatrapati Shivaji Maharaj International Airport to the new Navi Mumbai International Airport between August 2026 and May 2027.
An Adani Airports spokesperson told Bloomberg that refurbishment at Mumbai’s existing airport including the operationalisation of Taxiway-E and rapid exit taxiways, could temporarily reduce cargo handling capacity by nearly 25%. To manage this, the operator has proposed a “phased and limited realignment” of select international freighter operations.
Control over Mumbai’s aviation ecosystem
However, US officials view the move as more than an operational adjustment. Bloomberg reported that authorities in Washington see the shift as an attempt to channel traffic to the new Navi Mumbai airport, especially given Adani’s control over both facilities. This has raised concerns around the group’s growing influence over traffic allocation in India’s busiest aviation market, as per Bloomberg.
Adani Group is India’s largest private airport operator, with eight airports across seven cities, and plans to invest $11 billion to bid for additional terminals by 2030, according to the report.
Diplomatic overhang
The issue could widen into a diplomatic concern, Bloomberg reported, adding that the Indian government has reached out to Adani for an amicable resolution.
In a statement to Bloomberg, the DOT said it is working to ensure US carriers’ rights under the bilateral agreement, without elaborating further. India’s aviation ministry and FedEx did not respond to Bloomberg queries.