The Government of India has confirmed that the Airports Authority of India (AAI) has received a request seeking a waiver from contractual restrictions that limit certain airport concessionaires and their affiliated entities from holding equity in scheduled airlines.
Responding to a question in the Rajya Sabha on August 10, Minister of State for Civil Aviation Murlidhar Mohol said the request has reached AAI but has not yet been examined by the Ministry of Civil Aviation.
The disclosure comes amid growing debate around airport-airline cross-ownership and follows reports linking the issue to the Adani Group, which has publicly denied any plans to enter the airline business.
In a written reply to a parliamentary question raised by CPI(M) MP John Brittas, Mohol clarified that there is no overarching government policy preventing operators of major airports from owning or operating scheduled airlines.
However, he noted that certain airports operated under the public-private partnership (PPP) model are governed by concession agreements that contain specific restrictions on ownership structures.
According to the minister:
The ministry did not identify the entity that submitted the waiver request.
The issue centres on contractual provisions contained in some PPP airport concession agreements.
Under these arrangements, airport concessionaires and certain associated entities may face restrictions related to direct or indirect ownership, control or promotion of scheduled airlines.
A concessionaire is a private entity granted the right to operate an airport under an agreement with the government or a government agency.
The debate gained attention after reports suggested that Adani Airports had written to AAI on June 4 seeking a waiver that would permit it and its affiliates to invest in, establish, acquire, own, promote or control a scheduled airline.
The reported letter was later shared publicly by Trinamool Congress MP Mahua Moitra.
Separately, Adani Enterprises stated on July 24 that it was "not evaluating any proposal to enter the airline business".
The discussion has reignited concerns about potential conflicts of interest if airport operators also own or control airlines.
Industry observers have long debated whether cross-ownership could affect competition within the aviation sector, particularly where airport operators provide infrastructure and services used by multiple airlines.
Areas of concern include:
Flight slots determine when airlines can take off or land at an airport, while ground handling services include aircraft turnaround support, baggage management and operational assistance.
The issue drew industry attention in July when Rahul Bhatia, promoter and Managing Director of IndiGo, publicly opposed allowing airport operators to own airlines.
According to reported comments, Bhatia said such a structure could create a significant conflict of interest and potentially affect consumers.
The parliamentary question also sought clarification on whether the government had assessed the impact of airport-airline cross-ownership on competition and whether views had been sought from organisations including the Competition Commission of India (CCI), Directorate General of Civil Aviation (DGCA) and AAI.
The ministry's response did not provide details of any such assessment.
For now, the government has confirmed only one point: a waiver request has been submitted and received by AAI.
The Ministry of Civil Aviation has stated that the matter has not yet been examined, leaving unanswered questions about whether existing concession agreement provisions could eventually be revised.
Any future decision could have implications for airport operators, airlines and competition dynamics within India's fast-growing aviation market, making the issue one of the sector's most closely watched policy developments.
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