IndiGo, Air India oppose Adani’s airline entry

IndiGo and Air India have opposed the Adani Group’s reported interest in entering the airline business, raising concerns over conflicts of interest and the potential erosion of competition, as the conglomerate is learnt to have approached the government to remove cross-ownership restrictions that currently limit airline ownership in airports and vice versa.

IndiGo Managing Director Rahul Bhatia on Wednesday (July 22, 2026) in an analyst’s call to discuss the quarterly results said in a response to a query on the issue that there was “no global precedent because it would typically raise a massive conflict of interest, and over a period of time it would against the interest of consumers.”

The government is considering relaxing cross-ownership restrictions between airports and airlines, a move that media reports have linked to a request from the Adani Group. The restrictions are embedded in airport concession agreements: while the Noida International Airport (Jewar) and Navi Mumbai airport agreements prohibit entities with more than a 26% stake in an airline from owning an airport, the Delhi and Mumbai airport agreements impose a stricter 10% cap. The same provisions can also be applied in reverse, effectively preventing airport operators from acquiring stakes in airlines.

Airports under Adani Airport Holdings Ltd in India

A senior Air India executive told The Hindu “vertical consolidation in the airline industry is a problem”, referring to Adani Group’s presence in eight airports and interest in flying training, aircraft maintenance, repair and overhaul (MRO), retail, food & beverage concessions at airports, and air cargo.

“It is a recipe for conflict of interest as well as squeezing other players. Such a consolidation across the value chain not only kills competition but also results in fewer jobs,” the Air India official said. The remarks from the two airlines, which together account for nearly 90% of India’s domestic aviation market, indicate that any Adani proposal to enter the airline business is likely to face stiff opposition.

Meanwhile, IndiGo reported a second consecutive quarterly loss, posting a net loss of ₹238 crore for the quarter ended June, as elevated fuel prices, a weaker rupee and flight disruptions triggered by the Iran-Israel-US conflict weighed on its financial performance. The carrier had posted a net profit of ₹2,176 crore in the corresponding quarter a year earlier, marking a 110.9% year-on-year decline.