India is considering a major policy change that could allow airport operators to own and operate airlines.
The move is reportedly being examined as the government looks to increase competition in India’s highly concentrated aviation market, which is currently dominated by a small number of major airline groups.
If approved, the proposal could allow major airport operators such as Adani Airports and GMR Airports to enter the airline business, potentially creating new competition in the sector.
The idea comes amid growing concerns over the impact of India’s airline duopoly on fares, capacity and passenger choice. Allowing airport operators to launch airlines could bring new players into the market and help diversify the country’s aviation ecosystem.
However, such a move would also raise questions around competition, potential conflicts of interest and the need for strong regulatory safeguards.
With India’s aviation sector expanding rapidly, the proposed policy could reshape the relationship between airports and airlines — and potentially bring new competitors to India’s skies.
