Archive · 11 Oct 2026
Airport-Owned Airlines Could Create Conflicts and a New Duopoly
The government is considering letting companies that run airports also own airlines.
Experts say this could be unfair because airports decide things airlines need, like when they can take off and where they park.
An airport-owning airline might get better treatment than its competitors.
Experts suggest keeping airport and airline operations separate and having an independent group assign flight slots.
They also warn that this plan may not fix airlines’ big costs and debts.
Fuel, aircraft, maintenance, and taxes make it expensive to run airlines.
Passenger numbers are growing, but customers may not accept much higher fares.
The article says Air India and IndiGo together had about Rs 1.41 lakh crore in debt at the end of FY26.
Experts warn that allowing airport operators to own airlines could create conflicts because airports control essential facilities and services.
Potential risks include preferential slots and gates, unequal charges, and access to competitors’ commercially sensitive information.
Analyst Samant Kumar Jha recommends separating airport and airline operations, independent slot allocation, and clear equal-access rules.
The proposal may not solve airlines’ underlying problems, including high fuel costs, debt, aircraft shortages, taxes, and operating expenses.
At the end of FY26, Air India and IndiGo together had about Rs 1.41 lakh crore in debt, despite differing reported financial results.
- Who
- The government, airport operators, airlines, and aviation experts including Samant Kumar Jha.
- What
- A proposal to allow airport operators to own airlines has raised concerns about conflicts of interest and market competition.
- When
- The article does not specify when the proposal was made.
- Where
- India.
- Why
- Airport operators control essential facilities and services airlines need, while the industry also faces high costs, debt, and other structural challenges.
Potential benefits of entry
Risks and concerns
Competition in aviation
Potential benefits of entry
Allowing more players into the market could improve competition.
Risks and concerns
Experts caution that airport operators owning airlines may not improve competition and could create a new duopoly without adequate safeguards.
Airport ownership of airlines
Potential benefits of entry
The proposal would allow airport operators to enter the airline business.
Risks and concerns
Because airports control slots, gates, parking, and other services, an operator with an airline could favour its own carrier or disadvantage rivals.
- Domestic market share
- IndiGo and Air India together account for around 90% of India's domestic aviation market.
- Passenger traffic growth
- The article estimates annual passenger traffic growth at 8–10%.
- Fuel expense share
- Aviation turbine fuel is estimated to account for 35–45% of airline operating expenses.
- Air India debt
- Around Rs 61,000–62,000 crore at the end of FY26.
- Air India losses
- Consolidated losses of approximately Rs 22,000 crore.
- IndiGo debt and profit
- Debt of around Rs 79,500–80,000 crore and reported profit of approximately Rs 7,500 crore.
- Combined debt
- Air India and IndiGo carried about Rs 1.41 lakh crore in debt.