economy

Adani Group Explores Airline Entry as Centre Considers Policy Change

Published on: 23 Jul 2026, 10:27 AM

The Adani Group, which has built a significant presence in India's aviation ecosystem, is now considering entering the airline business, according to sources familiar with the matter. This marks a shift from its earlier stance of avoiding direct ownership of a carrier.

The Ministry of Civil Aviation (MoCA) has begun preliminary internal discussions on easing restrictions that currently prevent airport operators from holding significant stakes in airlines. This follows a request from the Adani Group for an enabling policy environment. If eased, the rules could also allow airlines to acquire stakes in airports.

Currently, operators of Delhi and Mumbai airports cannot hold more than a 10% stake in a scheduled carrier. The Adani Group holds a 74% stake in Mumbai airport, while GMR holds 74% in Delhi airport. The Adani Group is reportedly seeking the removal of this condition.

The government has been encouraging more airlines to enter the market to break the duopoly of IndiGo and the Air India Group, which together hold about 90% domestic market share. Recent operational disruptions at IndiGo, which has over 65% market share, highlighted the risks of high market concentration.

Sources indicate that the Adani Group is considering having its own airline with full control, rather than a minority stake in another carrier. The group operates eight airports in India and has interests in ground handling, maintenance, repair and overhaul (MRO), and pilot training. It also plans to set up an aircraft manufacturing facility in partnership with Brazil's Embraer.

In December 2024, Jeet Adani, who oversees the conglomerate's aviation business, stated that the group was not interested in the airline business as it did not fit its capital discipline. However, the government's push for more competition and the group's plans for an Embraer final assembly line have changed the calculus. A source close to the group said that having a captive airline would make sense for the assembly line project.

The Union Cabinet will need to approve any changes to the cross-ownership rules. The Adani Group and MoCA have not responded to queries from The Indian Express.

The airline sector in India has seen several failures due to tough operating conditions, intense price competition, and global supply chain issues. The government believes that deep-pocketed corporate groups are needed to sustain competition in the world's fastest-growing major aviation market.

Source: Indian Express

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