Government to assess airport operators’ airline ownership proposal, says Aviation Minister Rammohan Naidu

New Delhi: The government will assess the "pros and cons" of the proposal for airport operators owning stakes in airlines and decide on a balanced approach, Civil Aviation Minister K Rammohan Naidu said on Tuesday.

Talking to reporters on the sidelines of signing pacts for the next phase of Udaan, the minister said that to make full use of today's strong travel demand, India's aviation sector needs at least five airlines operating with 100 aircraft each.

Also Read: India's airport privatisation plan creates a barricade for power in few hands


He said the ministry is actively supporting the ambition given the country's size and growing airport network.

Naidu further said people, even in small towns, want airports in their vicinity.

"So, it is important for us to plan not only for the aspirations today, but for Viksit Bharat 2047 also," he said, adding that India should ideally have more than 350 airports.

To a query on the Adani Group seeking to own a stake in an airline, the minister said one thing from the government is clear: the country needs more airlines to come into the picture.

"Now, airports and airlines operating together need some deliberation on that. We are going to see the pros and the cons of it," he said.

The first idea, he said, is to provide the passenger with more airlines as an option.

Also Read: 11 airports to see Rs 8,622 crore private investment under 50-year concessions

And if there is someone who is interested in doing it, then the government supports the idea, the minister said.

Naidu also added that there is no clause or rule anywhere which stops the airport operators from having airlines other than the OMDA agreements for Delhi and Mumbai.

"So, if let us say DIAL, which is still a private operator, if it wants to operate an airline, then there is no rule as such that is stopping them. So, that is why we have to see; we have to take a balanced approach," he said.

He also said no decision has been made yet.

Under the Operation, Management and Development Agreement (OMDA) for major airports operated through public-private partnerships (PPPs), there are restrictions on airport operators having ownership in airlines.

Key airports, including those in Delhi and Mumbai, are operated under PPPs where AAI is also a stakeholder.