“We would like to categorically deny the recent media reports and market speculation suggesting that Adani Enterprises is planning to launch an airline. These reports are entirely baseless and factually incorrect. Adani Enterprises is not evaluating any proposal to enter the airline business,” a statement by Adani Enterprises Limited said.
The clarification comes after certain media reports claimed that the central government has been mulling a policy change to allow airport operators to own and run airlines.
The current rules do not permit operators of airports in Delhi and Mumbai to own more than a 10% stake in any airline. It was reported that discussions were underway within the Ministry of Civil Aviation for relaxing the rules, which would require legal clearance from the law ministry and the approval of the Cabinet led by Prime Minister Narendra Modi.
Some other reports claimed that the Adani Group approached the Airports Authority of India (AAI) seeking a relaxation in the existing rules. It was reported that the conglomerate sent a letter containing the request in the first week of June and is awaiting a response. The Adani Group was also said to be contemplating a joint venture for its proposed airline business, where the AAI could hold a part of the equity.
The media reports went on to claim that it Adani Group’s proposed airline venture is given a go-ahead, it will be housed under the group’s defence vertical, Adani Defence & Aerospace, the flagship aerospace and defence arm of Adani Enterprises Ltd, and not under its airports business, Adani Airport Holdings Limited (AAHL). Notably, AAHL operates seven airports across the country, including major metro gateways such as the Chhatrapati Shivaji Maharaj International Airport (CSMIA) in Mumbai and the Sardar Vallabhbhai Patel International Airport (SVPIA) in Ahmedabad.
However, the speculations have been put to rest after the Adani Group clarified that it does not plan to enter the airline business.
