Indian conglomerate Adani Group has approached the national government seeking to dilute a rule preventing operators of the country’s busiest airports, New Delhi and Mumbai, from holding more than 10 per cent stake in a scheduled airline.
The change would allow Adani, which already operates eight Indian airports including a 74 per cent stake in Mumbai, to launch its own airline and expand a presence that already spans pilot training, aircraft maintenance and ground handling.
According to Bloomberg and the Economic Times, discussions are underway within India’s Ministry of Civil Aviation, with any change requiring legal clearance from the law ministry and approval from the federal cabinet led by prime minister Narendra Modi.
The push comes as Adani has reportedly failed to secure interest from existing airlines in buying aircraft from a planned manufacturing joint venture with Brazilian firm Embraer, the Economic Times reported, with sources saying the group now sees launching its own carrier as a way to make that project commercially viable.
The move would introduce competition into a market where the gap between India’s two largest carriers is widening rather than closing. IndiGo reached a record 66.3 per cent domestic market share in June, according to Directorate General of Civil Aviation data, up from a domestic share of around 63.6 per cent for the full 2026 financial year. The carrier now operates a fleet of more than 440 aircraft, carried 123.4 million passengers in the 2026 financial year, and has firmed up orders for 60 Airbus A350-900 widebody jets as it pushes into long-haul international routes, having launched its first Airbus A321XLR service between Mumbai and Athens in January.
Air India’s domestic share fell to 23.9 per cent over the same period, according to the same data, as delayed aircraft deliveries, fleet retrofits and maintenance requirements forced the carrier to cut capacity. Air India operated close to 25 per cent fewer flights year-on-year in the first week of June, according to Kotak Institutional Equities. Air India chief commercial officer Nipun Aggarwal said on 17 July the airline planned to restore capacity across most domestic and international routes from September.
Rivals are expected to strongly oppose Adani’s push into aviation. A senior airline industry official told the Economic Times that an airport operator competing against airlines could work against the stated goal of reducing concentration, since it may be able to block competitors from prime take-off and landing slots. Government officials said any amendment would include provisions requiring an arm’s length distance between airport and airline arms, including barriers on shared executives and sensitive information.
Jeet Adani, son of group patriarch, billionaire Gautam Adani, denied any interest in an airline business in December, saying it did not fit the group’s capital discipline. Adani Group did not respond to the Economic Times‘ request for comment, and India’s civil aviation ministry did not immediately respond to Bloomberg’s request for comment.
Meanwhile, Adani senior has added a Boeing 737 Max 8 Business Jet (BBJ), reportedly worth around ₹1000 crore (around AU$149 million), to his private aircraft fleet, according to multiple Indian media reports.
The aircraft, understood to be the 10th in the fleet operated by Adani Group subsidiary Karnavati Aviation, flew non-stop from Basel, Switzerland, to Ahmedabad, a distance of 6300km. Its arrival reportedly coincided with Ganesh Chaturthi, a Hindu festival, and the jet received a ceremonial water cannon salute on landing.
Reports describe an interior fit-out costing an additional ₹35 crore (around AU$5.2 million), including a bedroom, bathroom, lounge and conference room, along with satellite internet and communication systems. Adani’s private fleet reportedly also includes Canadian, Brazilian and Swiss-built aircraft.
