Now Reading: Akasa Air backs policy allowing airport operators to run airlines
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Akasa Air backs policy allowing airport operators to run airlines
Akasa Air backs policy allowing airport operators to run airlines
Akasa Air has supported the government's proposed policy change that would permit airport operators to run airlines, Chief Executive Officer Vinay Dube said in an interview. Dube stated that the country needs…
The Story in Brief
Akasa Air has supported the government's proposed policy change that would permit airport operators to run airlines, Chief Executive Officer Vinay Dube said in an interview. Dube stated that the country needs more airlines and that Akasa supports any policy that increases competition. He acknowledged potential concerns about conflicts of interest when a private company owns both an airport and an airline, but expressed confidence in India's professional regulator and competition commission to ensure balanced oversight.
This stance contrasts sharply with that of IndiGo, India's largest airline, whose managing director Rahul Bhatia last month called the proposal a "major conflict of interest" with no global precedent. The proposed change would allow companies like Adani Group and GMR Airports, which operate multiple airports, to also hold stakes in or run airlines. Currently, the aviation market is dominated by IndiGo and the Tata Group's Air India, which together control about 90% of the market.
The Indian Opinion
The aviation ministry is pushing more competition into a market where two players hold 90% share. Yet when a policy might let airport giants become airlines too, the dominant carrier cries foul. IndiGo calls it a conflict of interest, but a near-duopoly is its own kind of distortion. The real test will be whether the regulator can enforce fair play. If Adani or GMR launch airlines, will smaller players like Akasa get equal access to runways and slots, or will the big get bigger?
Sources (4): aajtak.in, aajtak.in (2), aajtak.in (3), bazaar.businesstoday.in
This story was synthesised by AI from the 4 sources linked above.
