New Delhi: Indian billionaire Gautam Adani’s group is considering launching a new airline in India, a new report by Reuters claims. This move, if it comes
about, could reshape competition in the Indian aviation market. It is currently dominated by IndiGo and Air India, but Adani’s entry might make a huge change in the market. The report cites two sources with direct knowledge of the matter.
The Adani group already operates eight airports in India, including two in Mumbai.
A massive move into aviation from Adani
The Reuters report, citing two sources familiar with the matter, further said that no final decision has been made within the group about the decision to start an airline in the country. The decision is pending as of the risky nature of the airline business.
The report also said that Adani’s thinking emerged after the Indian government privately nudged business groups, including Adani, to consider starting an airline in the country. This was reportedly done due to ongoing scrutiny of Air India after it suffered a major plane crash last year. Market leader IndiGoalso saw widespread operational challenges last year, and these factors led the government to invite other players into the aviation industry, according to the report.
“It’s a difficult business, but Adani wants to consider it in national interest,” the source in the Reuters report said. The Adani group meanwhile did not immediately respond to queries from the news publication.
Meanwhile the Economic Times also reported on Thursday that Adani has approached the government seeking to dilute a clause restricting certain airport operators from holding stakes in scheduled airlines.
India is one of the world’s fastest-growing aviation markets, but concerns over limited competition persist, with IndiGo controlling 65.4 per cent of the domestic market and Air India holding around 25 per cent.
