Adani Group has categorically denied recent media reports suggesting it plans to launch an airline, with CFO Jugeshinder Singh clarifying that the group is exploring the possibility of picking a non-controlling stake in regional carriers to improve connectivity to its existing and future small airports. According to Singh's post-earnings call statement to analysts, "We're not starting an airline or business, but to be able to support the development of an airline for regional connectivity is our interest." The clarification comes four days after Adani Enterprises informed stock exchanges that it was not evaluating any proposal to enter the airline business, as reported by The Economic Times. Singh emphasized that a recent letter written by Adani Airport Holdings to the Airports Authority of India seeking a change in rules to allow it to have a larger stake in an airline should be viewed in the context of promoting regional connectivity rather than as a precursor to launching an airline.
IndiGo co-founder and Managing Director Rahul Bhatia has strongly opposed the potential policy change, stating that allowing airport operators to own and operate airlines would create a 'massive conflict of interest' if the reports were true. Speaking to investors, Bhatia pointed out that there was no global precedent for such a model, adding that IndiGo would take a wait-and-watch approach. He highlighted that airport operators allocate critical infrastructure such as slots and parking bays to airlines, which would create an inherent conflict if they also ran carriers themselves. The opposition follows a wave of flight cancellations at IndiGo that prompted government discussions on breaking the current aviation duopoly.
Officials said India is now discussing a policy shift that would let airport operators run airlines, potentially opening the door for Adani Group and GMR Airports Ltd. to launch their own carriers. Current rules cap airport operators in Delhi and Mumbai at a 10% stake in any airline, with Singh noting that airport operators can hold up to a 10% equity stake in an airline under existing regulations. A senior government official said the proposal remains at a preliminary stage and would need legal review and Cabinet approval, adding that the goal was to create an enabling environment for financially strong investors. The speculation follows late December 2025 discussions when Civil Aviation Minister Ram Mohan Naidu and other officials suggested India needed at least five airlines with close to 100 aircraft each to prevent similar crises.
The Adani Group is India's largest private airport operator, managing eight airports including Mumbai, Ahmedabad, Lucknow, Jaipur, Guwahati, Thiruvananthapuram, Mangaluru and Navi Mumbai. Several of these airports serve as gateways to smaller cities, making regional air connectivity an important driver of passenger traffic. Singh explained that "We want to see, as owners of airports and regional airports, that India's regional airline system also develops and develops properly." The group has already commenced operations in Adani Mundra Airport and announced a strategic partnership with Star Air aims to improve connectivity in Kutch in June. Adani has also evinced interest in bidding for more airports in upcoming rounds of privatization in India to further expand its national infrastructure footprint, which could bring more regional airports into the conglomerate's fold.
