3 hrs ago
India Weighs Airport Operators Holding Stakes in Airlines
India is thinking about whether companies that run airports should also be allowed to own airlines.
The aviation minister said the government will study the good and bad sides before deciding.
He said India needs more airlines because more people want to fly.
He believes at least five airlines with about 100 planes each would help meet demand.
He also said India may need more than 350 airports.
Some airport agreements, especially for Delhi and Mumbai, currently limit airport operators from owning airlines.
The minister said there is no general rule stopping operators such as DIAL from running an airline outside those agreements.
The government has not made a final decision.
The Centre is considering whether airport operators should be allowed to own stakes in airlines.
Civil Aviation Minister K. Rammohan Naidu said the government will examine the proposal and take a balanced approach.
Naidu said India needs at least five airlines, each operating fleets of about 100 aircraft, to meet growing demand.
He said India should ideally have more than 350 airports to support current needs and the Viksit Bharat 2047 vision.
No decision has been made, while existing OMDA agreements restrict airport operators’ airline ownership at major PPP airports.
- Who
- The Centre, Civil Aviation Minister K. Rammohan Naidu, airport operators and prospective airline investors such as the Adani Group.
- What
- The government is considering whether airport operators should be allowed to hold stakes in airlines.
- Where
- India, including major public-private partnership airports in Delhi and Mumbai.
- When
- The proposal was discussed on Tuesday; no decision has yet been made.
- Why
- To expand airline capacity and provide passengers with more airline choices while considering the advantages and risks of airport-airline ownership.
Regulatory balance and safeguards
Greater airline capacity and choice
Airport-airline ownership
Regulatory balance and safeguards
The government wants to examine possible advantages and risks before allowing airport operators to own airlines, particularly where OMDA agreements apply.
Greater airline capacity and choice
Allowing interested airport operators to enter the airline business could bring more carriers into the market and give passengers additional choices.
Expansion priority
Regulatory balance and safeguards
Any policy change should take a balanced approach and account for existing restrictions at major public-private partnership airports.
Greater airline capacity and choice
The minister says India needs more airlines and expanded airport capacity to respond to rising air-travel demand and the country’s long-term development goals.
Key facts
- Proposal
- Allowing airport operators to hold stakes in airlines
- Government position
- The Centre is reviewing the pros and cons and has not made a decision
- Minister
- K. Rammohan Naidu, Civil Aviation Minister
- Airline capacity target
- At least five airlines operating fleets of around 100 aircraft each
- Airport target
- More than 350 airports ideally, according to Naidu
- Existing framework
- OMDA agreements restrict airport operators’ airline ownership at certain major PPP airports
- Named prospective investor
- The Adani Group has sought to own a stake in an airline
Quotes
K. Rammohan Naidu
India’s civil aviation minister
“Now, airports and airlines operating together need some deliberation on that. We are going to see the pros and the cons of it.”
telegraphindia.com
“So, it is important for us to plan not only for the aspirations today, but for Viksit Bharat 2047 also”
telegraphindia.com
Sources
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