Archive · 11 Aug 2026
No Government Policy Bars Airport Operators From Owning Airlines
Big companies run airports, and other companies fly airplanes.
Someone asked the government if one company could do both.
The government said there is no rule stopping that.
A minister named Murlidhar Mohol told parliament this.
But some airports were built with private partners, and those agreements have special rules.
Those rules stop airlines from owning part of the airport company.
An airport operator asked for permission to change this rule.
The government has not made a decision on that request yet.
Some news reports said big companies like Adani wanted to start airlines.
Adani said those reports are not true.
Earlier, the aviation minister also said there are no plans to mix ethanol into airplane fuel.
The government said there is no policy restricting major airport operators from holding substantial equity in or operating scheduled airlines.
Union Minister of State for Civil Aviation Murlidhar Mohol gave the clarification in a written reply to a question in the Rajya Sabha.
Some airports developed under the Public-Private Partnership model have contractual agreements restricting airlines and their group entities from holding equity in concessionaires.
The Airports Authority of India has received a request seeking a waiver of the relevant agreement provision, which the Ministry of Civil Aviation has not yet examined.
Earlier reports said GMR Group and Adani Group were seeking approval to enter the airline business, but Adani Group denied the claims as 'false' and 'baseless'.
- Who
- Union Minister of State for Civil Aviation Murlidhar Mohol, responding on behalf of the government in the Rajya Sabha to a question by CPI(M) MP John Brittas; Civil Aviation Minister Ram Mohan Naidu issued a separate statement on ethanol blending.
- What
- A government clarification that no policy bars major airport operators from holding stakes in or operating scheduled airlines, while noting restrictions in certain PPP concession agreements and a pending waiver request.
- When
- On Monday, in a written reply to the Rajya Sabha; the ethanol-blending clarification was given earlier in August.
- Where
- New Delhi, in the Rajya Sabha and through the Ministry of Civil Aviation and the Airports Authority of India.
- Why
- In response to a parliamentary question on cross-ownership between airports and airlines, after the Airports Authority of India received a request seeking a waiver of contractual restrictions and amid media reports about airport operators entering the airline business.
- Government position
- No policy restricts major airport operators from holding substantial equity in or operating scheduled airlines
- Minister
- Murlidhar Mohol, Union Minister of State for Civil Aviation
- Forum
- Written reply to an unstarred question in the Rajya Sabha
- Question raised by
- CPI(M) MP John Brittas
- PPP restrictions
- Some concession agreements restrict scheduled airlines and their group entities/associates from holding equity in concessionaires
- Waiver request
- Received by the Airports Authority of India; not yet examined by the Ministry of Civil Aviation
- Adani denial
- Adani Group said reports of it entering the airline business are 'baseless' and 'factually incorrect'
- Related clarification
- Civil Aviation Minister Ram Mohan Naidu said there is no proposal to blend ethanol with Aviation Turbine Fuel
