Adani Group denies plans to enter airline business amid speculation
Dhaka: The Adani Group has denied it is planning to launch its own airline, pushing back against growing speculation that major airport operators Adani Group and GMR Group were seeking approval to enter the aviation business.
"We would like to categorically deny the recent media reports and market speculation suggesting that Adani Enterprises is planning to launch an airline. These reports are entirely baseless and factually incorrect," a company spokesperson said.
The denial came just hours after a spokesperson told a local publication that Adani Group was pursuing changes to rules governing airport operators' ownership of scheduled airlines. Another international news agency had also reported that no final decision had been made, noting Adani Group was still weighing the idea given aviation's reputation as a risky sector.
IndiGo Managing Director Rahul Bhatia said allowing airport operators to own and operate airlines would create a "massive conflict of interest" if the reports were true. Speaking to investors, he said there was no global precedent for such a model, adding that IndiGo would take a wait-and-watch approach.
Bhatia pointed out that airport operators allocate critical infrastructure such as slots and parking bays to airlines, which he said would create an inherent conflict if they also ran carriers themselves.
The speculation follows a wave of flight cancellations at IndiGo that prompted government discussions on breaking the current aviation duopoly. In late December 2025, Civil Aviation Minister Ram Mohan Naidu and other officials suggested India needed at least five airlines with close to 100 aircraft each to prevent similar crises.
Officials said India is now discussing a policy shift that would let airport operators run airlines, potentially opening the door for Adani Group and GMR Airports Ltd. to launch their own carriers. Current rules cap airport operators in Delhi and Mumbai at a 10% stake in any airline.
A senior government official said the proposal remains at a preliminary stage and would need legal review and Cabinet approval, adding that the goal was to create an enabling environment for financially strong investors.
An aviation venture would mark one of the boldest bets yet for the Adani Group. High taxes, stiff competition, and supply-chain troubles have pushed Indian carriers Kingfisher, Jet Airways, and Go First into bankruptcy over the past 15 years, while Air India has posted repeated losses.
The global aviation sector is also facing turbulence from rising fuel prices, airspace closures linked to the Iran war, and supply chain constraints that have delayed cabin refurbishments and new aircraft deliveries worldwide.
