Politics · India Bureau
India mulls allowing airport operators to own airlines
The government is examining whether to ease cross-ownership restrictions between airport operators and airlines. Aviation Minister Rammohan Naidu said a decision is still pending as policymakers weigh the potential benefits and drawbacks.
LSN India ·
India's aviation regulator is considering a significant shift in policy that could allow airport operators to directly own and operate airlines, a move aimed at expanding consumer choice in the domestic aviation market.
Aviation Minister Rammohan Naidu indicated that the government is currently evaluating the merits and challenges of relaxing existing cross-ownership restrictions. Currently, Indian rules prevent airport operators from holding stakes in airlines, maintaining a separation between these two segments of the aviation industry.
Proponents of liberalizing the rule argue that allowing airport operators to own airlines could increase competition and provide passengers with more travel options. The move would also potentially improve operational efficiency by integrating airport and airline services under single management.
However, regulators remain cautious about potential drawbacks, including concerns over fair competition and preferential treatment that airport-owner airlines might receive at their home bases. The government is examining international precedents and studying how such integration has functioned in other countries before making a final determination.
No timeline has been announced for when a decision will be made on the proposed policy change.