No policy bars major airport operators from owning airlines: Govt
New Delhi, Aug 10
The government on Monday clarified that there is no government policy preventing major airport operators from holding substantial stakes in or operating scheduled airlines, even as the Airports Authority of India has received a request seeking a waiver of certain contractual restrictions that could enable an airport operator to enter the airline business.
Union Minister of State for Civil Aviation Murlidhar Mohol provided the clarification in a written reply to a question in the Rajya Sabha regarding cross-ownership between airports and airlines.
"There is no such Government Policy restricting operators of major airports from holding substantial equity in or operating scheduled airlines," the minister said.
However, the government noted that certain airports developed under the Public-Private Partnership (PPP) model are governed by contractual agreements that impose restrictions on ownership structures.
"However, the extant contractual agreements relating to some airports under Public Private Partnership (PPP) contain certain restrictions on scheduled airlines and their group entities/associates from holding Equity Share of the Concessionaires," the government said.
The government also confirmed that AAI has received a request seeking a waiver of the relevant provision in the agreement.
"Request seeking waiver of the relevant agreement provision has been received by Airports Authority of India (AAI). The matter has not yet been examined by the Ministry of Civil Aviation," the government said.
The response indicates that while there is no overarching policy prohibition on airport operators owning or running airlines, restrictions in specific PPP concession agreements could limit such arrangements unless exemptions or waivers are granted.
Earlier in August, Union Civil Aviation Minister Ram Mohan Naidu rejected claims that the government plans to blend ethanol with Aviation Turbine Fuel (ATF), asserting that there is no such proposal under consideration and cautioning against misinformation relating to aviation safety.
— IANS
Reader Comments
This is interesting but worrying at the same time. Airport operators owning airlines could lead to unfair advantages—like controlling slots, landing rights, and charging higher fees to rival airlines. The government needs to put strong regulatory safeguards in place before allowing this. Otherwise, smaller airlines will be crushed.
If this means more domestic flights to smaller cities, I'm all for it. We need better regional connectivity. But who's asking for the waiver? The lack of transparency in these deals is concerning. The government should name the operator and make the proposal public before deciding anything.
As a frequent flyer, I just hope this leads to better service and not the other way around. Airport monopoly is already bad—if they own airlines too, imagine the chaos! The Ministry must ensure passenger interests are the top priority, not corporate profits. 😞
This is classic Indian bureaucracy—no policy against it, but contracts say otherwise. Why not just make a clear national policy on this instead of leaving it to case-by-case waivers? We need a comprehensive aviation policy that addresses consolidation, competition, and consumer protection in one go.
Reading this from an outsider's perspective, it seems like India is trying to balance liberalization with protective clauses. It's a smart move to keep an eye on how airport-airline cross-ownership plays out globally before making sweeping changes. The waiver request will be a test case.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.