The Indian government confirmed that no policy prevents major airport operators from holding substantial stakes in or operating scheduled airlines, while acknowledging that the Airports Authority of India has received a request seeking relaxation of certain contractual restrictions.
Minister of State for Civil Aviation Murlidhar Mohol provided the clarification in a written reply to the Rajya Sabha when responding to CPI(M) MP John Brittas’s question regarding cross-ownership between airports and airlines.
The ministry noted that whilst no overarching government policy restricts such arrangements, certain airports developed under the Public-Private Partnership model are governed by contractual agreements that impose restrictions on ownership structures.
The government confirmed that AAI has received a request seeking a waiver of the relevant contractual provision, though the matter has not yet been examined by the Ministry of Civil Aviation.
These contractual provisions typically prevent scheduled airlines and their group entities from holding equity shares in airport concessionaires operating under PPP agreements.
Industry concerns have emerged over potential conflicts of interest. IndiGo founder Rahul Bhatia previously warned that permitting cross-ownership between airports and airlines could create a massive conflict of interest, noting there is no global precedent for such arrangements.
MP Brittas had asked whether the government assessed the impact on competition, slot allocation, airport charges and fair access to infrastructure, though the ministry stated the matter remains unexamined.
