India Needs More Competition In Aviation, Says Akasa Air CEO Vinay Dube

Akasa Air will be supportive of a proposal to allow airport operators to own airlines as the government will take into account the "considerations" involved before taking a decision since India needs more competition in aviation, according to its CEO Vinay Dube.

The remarks from the founder and CEO of the nearly four-year-old Akasa Air comes against the backdrop of reports that the government is looking at allowing airport operators to own airlines.

In an interview to PTI on Wednesday, Dube said he was very confident that the government will take into account considerations involved when a private enterprise owns both an airport and an airline.

"And I'm very confident that they (government) know about this (and) they'll take into account. Therefore I am happy and supportive of this move," he said.

Dube was responding to queries regarding the proposal being considered that would allow airport operators to own airlines.

While stressing that the country needs "more competition in aviation", the Akasa Air Founder and CEO said that India needs, can have and should support multiple airlines.

He noted that there would be some considerations that the government will need to have when a private airport operator also owns an airline.

"But I am 100% sure that the government is cognisant of these (considerations) and will account for these as it creates its legislature. But the overarching factor is that as a nation, you know, we want consumers to have more choices," Dube said.

Meanwhile, on July 23, IndiGo Co-Founder and Managing Director Rahul Bhatia said there would be a "massive conflict of interest" if airport operators are allowed to own airlines.

On July 24, Adani Group denied media reports and market speculation that it is planning to enter the airline business.

The group operates eight airports.

India is one of the world's fastest growing domestic aviation markets.

Akasa Air, which currently has a fleet of 40 Boeing 737 aircraft, will be completing four years of flying on Friday. The airline commenced operations on August 7, 2022.

In a written reply to the Rajya Sabha on August 3, Civil Aviation Minister K Rammohan Naidu said the government is committed to fostering a conducive environment that supports the expansion of existing airlines while facilitating the entry of new operators into the market.