The United States has objected to the Adani Group’s plan to shift cargo operations from Mumbai’s main airport to its upcoming Navi Mumbai facility, raising concerns over potential violations of the bilateral air services agreement, Bloomberg reported.
The move, if implemented, could escalate into a broader aviation dispute between the two countries, according to the report, which cited people familiar with the matter.
According to Bloomberg, the US Department of Transportation (DOT) wrote to India’s civil aviation ministry in March, warning that the proposed relocation of freighter operations - including those of FedEx - may breach provisions of the US–India Air Transport Agreement.
The regulator cautioned that any action forcing American carriers to relocate could invite reciprocal measures under the treaty, Bloomberg reported, citing unnamed sources.
In a statement to Bloomberg, the DOT said it is working to ensure that the rights of US carriers under the bilateral agreement are protected, without providing further details.
The concerns stem from a directive by Adani Airport Holdings to gradually move cargo operations from Chhatrapati Shivaji Maharaj International Airport to Navi Mumbai International Airport between August 2026 and May 2027, Bloomberg reported.
An Adani Airports spokesperson told Bloomberg that ongoing refurbishment at Mumbai’s existing airport — including the operationalisation of Taxiway-E and rapid exit taxiways — could reduce cargo handling capacity by nearly 25%.
To manage this, the company has proposed what it described as a “phased and limited realignment” of select international freighter services.
US officials, however, view the proposal as more than a temporary operational adjustment. Bloomberg reported that authorities in Washington see the shift as an attempt to channel traffic towards the Navi Mumbai airport, particularly given Adani Group’s control over both facilities.
This has heightened concerns about the group’s growing influence over traffic allocation in India’s busiest aviation market, the report said.
Adani Group is India’s largest private airport operator, managing eight airports across seven cities, and plans to invest $11 billion to bid for additional airport projects by 2030, according to Bloomberg.
Bloomberg reported that FedEx — currently the only US cargo airline operating out of Mumbai — approached the DOT over the matter.
A forced relocation away from Mumbai’s primary airport could affect access to valuable operating slots, which are protected under the bilateral agreement, the report noted.
The airline and India’s civil aviation ministry did not respond to Bloomberg’s queries.
The issue carries the potential to spill into diplomatic channels. Bloomberg reported that the Indian government has reached out to Adani Group to seek an amicable resolution.
With cargo capacity constraints, infrastructure expansion, and bilateral aviation rights intersecting, the outcome could set a precedent for how airport operators balance commercial strategy with international obligations.
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