IndiGo MD says airport operators owning airlines would create 'massive conflict of interest'
New Delhi, July 23
IndiGo Managing Director Rahul Bhatia on Thursday said allowing airport operators to own and operate airlines would create a "massive conflict of interest", saying there is no global precedent for such a model.
Speaking during IndiGo's investor call, Bhatia said, "No global precedent of airport operators owning airlines. Massive conflict of interest if airport operators are allowed to own airlines."
Bhatia said allowing airport operators to own airlines would create a conflict of interest, as airport operators are responsible for allocating critical infrastructure such as airport slots, parking bays and other operational facilities to airlines. He said there is "No global precedent of airport operators owning airlines" and described the arrangement as a "Massive conflict of interest if airport operators are allowed to own airlines."
His remarks come amid media reports saying that major airport operators GMR Group and the Adani Group are seeking approval to enter the airline business by pursuing changes to the existing rules governing airport operators' ownership of scheduled airlines.
Media reports said the move would require changes to the current regulatory framework, which bars operators of New Delhi and Mumbai airports from holding more than a 10 per cent stake in a scheduled airline. The reports added that the government is examining whether the provision can be amended, including seeking legal opinion, with any change requiring Cabinet approval.
Neither the government nor the airport operators have officially announced any change to the existing rules. The developments regarding possible policy changes have so far been reported by the media, citing government sources and company executives.
— ANI
Reader Comments
I understand his concern, but isn't this just protecting IndiGo's dominance? Airport operators like GMR and Adani already manage multiple airports efficiently. Why can't they bring the same efficiency to airlines? We need more competition, not less.
Having spent years in aviation abroad, I agree with Bhatia. No major global hub like Changi, Heathrow, or Dubai allows airport operators to own airlines precisely because of this conflict. India should look at international best practices rather than creating a risky precedent. 🇮🇳
The government is just testing the waters through media leaks. If they change these rules, it will be a disaster for smaller airlines. Imagine trying to compete for slots when your competitor owns the airport itself! Our regulators need to stay strong on this one. Yaar, yeh toh bahut risky hai! 🙏
While I agree in principle, let's not pretend the current system is perfect. IndiGo already enjoys monopoly-like status at many airports. Regulators should focus on ensuring fair competition regardless of ownership structure, rather than just protecting existing players. Just my two paise! 🤔
Bhatia is spot on! Airport operators already have too much power over airlines. Giving them the ability to own airlines would be like letting the referee also play for one team. The government should focus on improving airport infrastructure rather than changing rules for corporate giants. ✈️
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