Adani Rejects Airline Launch Reports, Says 'No Proposal' Under Consideration

Adani Enterprises on Friday denied reports that it was planning to launch an airline, issuing a clarification to the stock exchanges after media reports and market speculation suggested the conglomerate was exploring an entry into commercial aviation.

In a regulatory filing, the company said it was "not evaluating any proposal to enter the airline business" and described the reports as "entirely baseless and factually incorrect."

The clarification comes after recent media reports indicated that the Adani Group was exploring ways to enter the airline sector, prompting speculation over its aviation plans.

Clarification Follows Reports on Ownership Rule

According to an earlier report by The Economic Times (ET), the Adani Group had approached the government seeking changes to a privatisation-era rule that prevents operators of Delhi and Mumbai airports from owning more than a 10% stake in a scheduled airline.

The report said a relaxation of the rule would remove a key regulatory hurdle if the group decided to launch an airline. However, it also noted that no final decision had been taken on entering the airline business.

Adani Enterprises has now rejected those reports, saying it is not considering any proposal to launch an airline.

Aviation Expansion Continues, But No Airline Plans

The ET report had linked the proposal to the Adani Group's broader aviation ambitions, which include airport operations, ground handling, pilot training, aircraft maintenance and repair (MRO), and a planned aircraft manufacturing venture with Brazilian aerospace company Embraer.

The reported proposal also drew criticism from existing airline operators. IndiGo Managing Director Rahul Bhatia said on Thursday that allowing airport operators to own airlines could create a "massive conflict of interest" and eventually hurt consumers.

According to the publication, government officials have said that any future policy change would include safeguards such as operational separation between airport and airline businesses, including restrictions on sharing commercially sensitive information and common management.

The Adani Group is India's largest private airport operator, managing eight airports, including Mumbai International Airport, while also developing the Navi Mumbai International Airport. Although the group has expanded its presence across the aviation value chain in recent years, it has now clarified that it has no plans to enter the airline business.