Adani considers launching their own airline
The Adani Group owned by Gautam Adani which operates 8 airports across India is considering launching their own airline, reported Reuters on Thursday, July 23, citing sources. The report comes a day after Bloomberg reported, again citing sources, that the Union Government is considering allowing airport operators to own and run airlines.
The move by the conglomerate has the potential to realign the Indian private airline market, currently dominated by IndiGo and Air India.
In 2006, when Delhi and Mumbai airports were privatized, provisions were included which prevented the airport operators from holding more than a 10 % stake in a scheduled airline.
Reports suggest The Ministry of Civil Aviation is expected to take the counsel of Solicitor General Tushar Mehta on the retrospective amendment to the clause. The rule change will require Cabinet level approval.
The Adani Group is also in talks with the aircraft manufacturing partnership with Brazilian plane maker Embraer. An unnamed senior Adani executive reportedly told media that no decision has been taken yet and there currently were no advanced talks to acquire an existing airline.
