No Regulatory Roadblock: Airport Operators Can Enter Airline Business, Says Govt
What Happened
Union Minister of State for Civil Aviation Murlidhar Mohol informed the Rajya Sabha that there is no government policy prohibiting airport operators from owning or operating scheduled airlines. The clarification comes amid debate over whether airport operators such as the Adani Group could enter the airline business. While no government policy blocks such cross-ownership, some airport concession agreements under the Public-Private Partnership model contain contractual restrictions that may prevent it. AAI has received a request seeking a waiver of these provisions, though the Civil Aviation Ministry has not yet examined it.
Key Takeaways
India currently has no blanket regulatory ban on airport-airline ownership, but contractual clauses at certain PPP airports remain a hurdle.