Now Reading: No policy bars airport operators from owning airlines: Govt
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No policy bars airport operators from owning airlines: Govt
The government on Monday said no policy restricts major airport operators from holding substantial equity in or running scheduled airlines. Minister of State for Civil Aviation Murlidhar Mohol stated this in Rajya…
The Story in Brief
The government on Monday said no policy restricts major airport operators from holding substantial equity in or running scheduled airlines. Minister of State for Civil Aviation Murlidhar Mohol stated this in Rajya Sabha in response to a question on cross-ownership between airports and airlines.
However, existing Public Private Partnership contracts for some airports bar scheduled airlines from holding equity in the concessionaire. The Airports Authority of India has received a waiver request for these restrictions, which the ministry has not yet examined. Incumbent airlines, including IndiGo, have flagged potential conflicts of interest. The Adani Group, India's largest private airport operator, had denied reports of entering the airline business.
The Indian Opinion
The conflict-of-interest argument is strong, but a blanket ban may stifle competition. The real test is whether the ministry imposes firewalls, separate management, no sharing of sensitive data, if it allows cross-ownership. Watch how the waiver request is handled: will the government prioritise consumer choice or incumbent airlines' fears?
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
