Adani airline plans: Why the Centre may ease airport-airline ownership rules | Explained
The story so far: The Ministry of Civil Aviation is examining whether to relax cross-ownership restrictions between airport operators and airlines. Officials are preparing a concept note for consultations with NITI Aayog and other government ministries before any proposal is taken to the Union Cabinet. The exercise comes amid media reports, citing a letter from Adani Airports CEO Arun Bansal, that the proposed changes are linked to the Adani Group’s reported interest in entering the airline business. However, Adani Enterprises denied the reports. What is the government proposing? The restrictions under review are embedded in airport concession agreements rather than in legislation. The concession agreements for Delhi and Mumbai airports cap aggregate airline ownership in the airport operator at 10%, while those for the Noida International Airport (Jewar) and Navi Mumbai airports are more relaxed and allow up to 26% ownership in an airline. These provisions can also be applied in reverse, effectively restricting airport operators from acquiring significant stakes in airlines. Media reports suggest that the government is interested in this ostensibly to allow …




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