Now Reading: Airport operators seek waiver to hold airline equity, AAI mulls
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Airport operators seek waiver to hold airline equity, AAI mulls
The Airports Authority of India (AAI) has received a request seeking exemption from contractual rules that bar airport operators from holding equity in scheduled airlines. Union Minister of State for Civil Aviation…
The Story in Brief
The Airports Authority of India (AAI) has received a request seeking exemption from contractual rules that bar airport operators from holding equity in scheduled airlines. Union Minister of State for Civil Aviation Murlidhar Mohol told the Rajya Sabha that the government has no general policy prohibiting such cross-ownership, though some public-private partnership (PPP) concession agreements currently impose restrictions.
Minister Mohol stated that no examination or decision has been made on the request yet. The query was raised by CPI(M) MP Dr John Brittas amid reports that the Adani Group, which operates several airports, is seeking relief from these norms. Adani Group has denied any plans to enter the airline business.
The Indian Opinion
The noise around cross-ownership ignores a plain fact: the government itself says no blanket ban exists, only project-specific PPP contract clauses. Claims that this will inevitably harm consumers, led by IndiGo's Rahul Bhatia, sidestep that dozens of countries allow integrated airport-airline ownership without disaster. The real test is not ideology but competition safeguards. Will the Ministry or CCI demand firewalls on slot allocation, ground handling, and tariffs before any waiver is granted? That single condition will separate genuine reform from a corporate giveaway.
Source: bazaar.businesstoday.in
This story was synthesised by AI from the source linked above.
