Govt May Let Airport Operators Run Airlines: What It Means For India's Aviation Sector

India's aviation sector could be set for a major policy shift as the government reportedly considers allowing airport operators to own and run airlines, a move aimed at boosting competition and reducing the dominance of IndiGo and Air India. Business Today's Richa Sharma explains that the proposal could pave the way for groups like Adani and GMR Airports to enter the airline business, though questions remain over whether the sector's low profitability and high capital requirements will attract new players. Meanwhile, Pankaj Pandey, Head of Research, ICICI Direct, believes the industry still faces structural challenges, including aircraft shortages, limited manufacturing capacity, rising aviation fuel costs, and MRO constraints