India to weigh airport operators holding airline stakes: minister

The government will conduct a comprehensive assessment of the advantages and disadvantages of allowing airport operators to hold equity in airlines before deciding on policy, Civil Aviation Minister K Rammohan Naidu announced on Tuesday.

Addressing reporters during the signing of agreements for the next phase of the Udaan regional connectivity scheme, Naidu stressed that India's aviation sector requires at least five airlines each operating 100 aircraft to fully capitalize on the country's robust travel demand. The ministry is actively supporting this expansion target given India's geographic size and rapidly growing airport infrastructure, he said.

Naidu underscored that airports are increasingly sought in smaller towns and cities across India, reflecting changing travel patterns. The government aims to support growth in both the immediate term and the long-term vision of "Viksit Bharat 2047," with India ideally needing more than 350 airports to serve its ambitions, he added.

The minister's comments come as major airport operators, including the Adani Group, have expressed interest in acquiring stakes in airlines. Naidu clarified that the government's position remains unwavering: India needs more airlines to emerge and expand operations to meet growing passenger demand and support economic development across the country.