Any takers? Jeet Adani says airline business doesn’t make the cut

The government’s proposed policy to allow airport operators to own and run airlines may not find many takers, even as it seeks to break the duopoly in India’s aviation market.

Jeet Adani, Director at Adani Airport Holdings Ltd. (AAHL), has said the group will not consider entering the airline business because it does not fit its capital discipline.

“We will not consider it as it stands today; the airline industry is not something that we see fitting the capital discipline. We are used to high-margin business and investing in assets and using our assets well. The airline business is the opposite. We have no plans to enter the airline business,” Adani said on several media platforms.

Adani operates eight airports, including Navi Mumbai and Mumbai, while GMR Group operates five, including Delhi and Hyderabad. Over the past few years, several major airlines, including Jet Airways, Kingfisher Airlines and Go First, have collapsed in India amid cut-throat competition and razor-thin margins.

Both IndiGo and Air India have posted losses in FY26, owing to factors such as high aviation turbine fuel prices, a stronger dollar against the rupee and geopolitical turmoil.

The government is reportedly considering a policy change that could allow airport operators to own and run airlines, potentially enabling companies such as the Adani Group and GMR Airports Ltd. to start their own carriers, according to people familiar with the matter.

According to a Bloomberg report, the Ministry of Civil Aviation is discussing the proposal, which would require legal approval from the law ministry and clearance from the Union Cabinet led by Prime Minister Narendra Modi. At present, operators of Delhi and Mumbai airports are restricted from owning more than a 10% stake in any airline.

The proposed change is aimed at increasing competition in India’s aviation market, where IndiGo and Air India together account for nearly 90% of domestic capacity, the report said. However, concerns remain that airport operators could favour their own airlines in areas such as prime airport slot allocation.