What happened

IndiGo and Air India have opposed reported interest by the Adani Group in entering India’s airline business. The opposition is linked to fears that airline ownership by an airport operator could distort competition and create conflicts of interest in the civil aviation market.

Media reports say the Adani Group has approached the government to remove cross-ownership restrictions that limit airline ownership between airlines and airport operators. The government is considering whether to relax restrictions contained in airport concession agreements.

Earlier position and current dispute

Airport concession agreements at major Indian airports have included ownership caps meant to prevent cross-holding between airport operators and airlines. The policy debate is whether those restrictions should continue to protect competition, or whether they should be softened to allow a larger corporate group to participate in both airport operations and airline-linked businesses.

The current dispute is whether those restrictions should continue to protect competition, or whether they should be softened to allow a larger corporate group to participate in both airport operations and airline-linked businesses.

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