India is discussing a proposal to waive a rule that bars New Delhi and Mumbai airport operators from owning more than a 10% stake in airlines, Aviation Minister K Rammohan Naidu said, as the government aims to tackle the IndiGo-Air India duopoly.
While rules do not bar airports like Bengaluru from launching carriers, the operations and management agreement prevents those in Delhi and Mumbai from controlling airlines, Naidu told reporters in New Delhi on Tuesday. A final decision has not been taken yet, he said.
Bloomberg News first reported on the proposal in July.
IndiGo and Air India fly nine out of 10 domestic passengers in the world’s fourth-largest aviation market. A relaxation of ownership restrictions would allow the Adani Group — the operator of Mumbai and seven other airports — and GMR Airports, which manages New Delhi and four additional facilities, to own carriers.
India needs at least five carriers, each with at least 100 aircraft, Naidu said. “We are willing to consider anyone who applies for a new airline.”
The collapse of Jet Airways India Ltd. and Go Airlines India Ltd., along with the merger of Vistara and AirAsia India under the Tata Group, has left IndiGo and Air India in a dominant position. Newer player Akasa Air, struggling incumbent SpiceJet Ltd. and smaller regional carriers operate on the margins.
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India is discussing a proposal to waive a rule that bars New Delhi and Mumbai airport operators from owning more than a 10% stake in airlines, Aviation Minister K Rammohan Naidu said, as the government aims to tackle the IndiGo-Air India duopoly.
While rules do not bar airports like Bengaluru from launching carriers, the operations and management agreement prevents those in Delhi and Mumbai from controlling airlines, Naidu told reporters in New Delhi on Tuesday. A final decision has not been taken yet, he said.
Bloomberg News first reported on the proposal in July.
IndiGo and Air India fly nine out of 10 domestic passengers in the world’s fourth-largest aviation market. A relaxation of ownership restrictions would allow the Adani Group — the operator of Mumbai and seven other airports — and GMR Airports, which manages New Delhi and four additional facilities, to own carriers.
India needs at least five carriers, each with at least 100 aircraft, Naidu said. “We are willing to consider anyone who applies for a new airline.”
The collapse of Jet Airways India Ltd. and Go Airlines India Ltd., along with the merger of Vistara and AirAsia India under the Tata Group, has left IndiGo and Air India in a dominant position. Newer player Akasa Air, struggling incumbent SpiceJet Ltd. and smaller regional carriers operate on the margins.
!ping ind