IndiGo's Rahul Bhatia warns letting airport operators own airlines will create 'massive conflict of interest'

IndiGo

promoter Rahul Bhatia has cautioned against any move to allow private airport operators to own and run airlines, saying such a policy would create a "massive conflict of interest" and ultimately work against consumers.

Bhatia made the remarks during IndiGo's post-earnings analyst call when he was asked about reports that the government may review its policy to allow private airport operators to own scheduled airlines.

"We're reading the news just as you are," Bhatia said.

"If the news has any merit, it has no global precedent because it would typically raise a massive conflict of interest. Over a period of time, it would be against the interests of consumers. We'll watch this space as it develops," he added.

His comments come after reports that the Adani Group has written to the government seeking a review of the policy that bars private airport operators from owning airlines.

Under the current rules, private airport operators cannot own more than a 10% stake in any airline.

A relaxation of the norms is seen as a way to boost competition in India's airline industry, where IndiGo accounts for around 66% of the domestic market, followed by the Air India Group.

However, the proposal has also raised concerns over potential conflicts of interest. Critics argue that airport operators owning airlines could favour their own carriers through airport slot allocation, terminal access and other airport infrastructure, potentially disadvantaging rival airlines.

Bhatia echoed those concerns, saying there is no global precedent for such a model and warning that, over time, it would be against the interests of consumers.

The government has not officially confirmed whether it is reviewing the policy to allow private airport operators to launch airlines.



IndiGo shares ended 1.83% lower at ₹5,023.50 on the NSE on Thursday.