The Ministry of Civil Aviation is reportedly preparing a concept note for consultations with NITI Aayog and other ministries. After consultations, the Ministry of Civil Aviation is expected to place a proposal before the Union Cabinet.

Background and earlier position

The reported cross-ownership constraints are contained in airport concession agreements rather than in legislation. Delhi and Mumbai airports: aggregate airline ownership in the airport operator is capped at 10%.Noida International Airport (Jewar) and Navi Mumbai: aggregate airline ownership in the airport operator is capped at 26%.

A key implication highlighted is the reverse possibility: depending on ownership structure, concession caps could also limit an airport operator’s ability to take significant stakes in airlines.

What changed now (why the government is revisiting the issue)