India's largest airline IndiGo says Adani airline will be a huge conflict of interest

Adani Group approaching the government for a change of norms allowing it to start an airline will typically lead to a massive conflict of interest and go against the consumers’ interest over a period, said IndiGo founder and MD Rahul Bhatia.

Addressing the company’s Q1FY27 earnings call, Bhatia said that it has to be seen if these reports are true and the existing policy is being amended. He was asked about reports that the Adani Group wants the government to amend an existing clause that prevents airport operators of Delhi and Mumbai from holding more than 10% stock in a scheduled airline.

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Bhatia said Adani venturing into the airline business will lead to a massive conflict of interest and, over a period, will be against the interest of consumers. "There is no global precedent. Typically, there is a massive conflict of interest, and over a period it will be against the interest of the consumers," said Bhatia.

On whether IndiGo is open to airport operations, Bhatia said any decision will be based on what happens on the matter in the future.  

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According to sources in the civil aviation ministry, the issue has been informally under discussion because the aviation market has evolved significantly since these concession agreements were drafted two decades ago.

“There is no formal proposal before the government. These are preliminary discussions at best. If amended, the government may still cap the airport operators to have a shareholding in limited capacity,” said the sources.