India weighs letting airport operators launch airlines to challenge domestic duopoly

Civil Aviation Ministry deliberations could let airport owners such as Adani Group and GMR Airports own carriers, loosening a 10% stake cap. The proposal targets IndiGo and Air India’s near-90% domestic capacity share, while raising competition concerns around slots and airport access.

— Filed Wed, 22 Jul, 2026, 09:19 IST · Source The Hindu BusinessLine · Updated

India is considering allowing airport operators to own airlines, potentially enabling Adani Group and GMR Airports to launch carriers. The policy aims to counter IndiGo-Air India dominance but raises concerns over preferential airport slots and aircraft shortages.

Why this matters

For Adani Group, the airline proposal follows the DOJ dropping its bribery case, easing a capital-planning cloud, and disputes over nicotine pouch sales at Mumbai airport duty-free.

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