Adani Enterprises not taking off on runway anytime soon
Adani Enterprises issued an official statement, denying reports which appeared in the media that the Adani Group plans to launch an airline.The company informed the stock exchange in a regulatory filing that recent reports in the media which claimed that the Adani Group is evaluating an entry to the airline business “were entirely baseless and factually incorrect”, adding that it is not evaluating any proposal to enter the airline business.
Earlier, it was reported in a section of the media that the Adani Group had approached the government to seek changes to a rule which has barred operators of airports in Delhi and Mumbai from owning more than a 10% stake in a scheduled airline.
Media reports had claimed that a proposed change in the rule would remove the regulatory hurdle if the Adani Group chose to launch an airline.
According to such media reports, the Adani Group made a proposal to the union Civil Aviation Ministry in June seeking relaxation of rules which bar airport operators from owning a stake in airlines.
Such a proposal was linked to the Adani Group’s expanding aviation interest in airport operations, ground handling, pilot training, aircraft maintenance and repair, and a planned aircraft manufacturing venture with Brazil’s Embraer.
The Adani Group is India’s largest private airport operator, managing eight airports, including Mumbai International Airport, besides the Navi Mumbai International Airport, which began operations recently.
However, IndiGo co-founder and Managing Director Rahul Bhatia said on Thursday that there will be a “massive conflict of interest” if airport operators are also allowed to own airlines, reacting to media reports which suggested that the Adani Group plans to launch an airline.
“All I can say is that if the news has any merit, one, it has no global precedent, and typically (there will be) a massive conflict of interest,” Bhatia said during a recent analysts’ call to discuss the airline’s first quarter financial results.
Earlier, it was reported in a section of the media that the Adani Group had approached the government to seek changes to a rule which has barred operators of airports in Delhi and Mumbai from owning more than a 10% stake in a scheduled airline.
Media reports had claimed that a proposed change in the rule would remove the regulatory hurdle if the Adani Group chose to launch an airline.
According to such media reports, the Adani Group made a proposal to the union Civil Aviation Ministry in June seeking relaxation of rules which bar airport operators from owning a stake in airlines.
The Adani Group is India’s largest private airport operator, managing eight airports, including Mumbai International Airport, besides the Navi Mumbai International Airport, which began operations recently.
However, IndiGo co-founder and Managing Director Rahul Bhatia said on Thursday that there will be a “massive conflict of interest” if airport operators are also allowed to own airlines, reacting to media reports which suggested that the Adani Group plans to launch an airline.
“All I can say is that if the news has any merit, one, it has no global precedent, and typically (there will be) a massive conflict of interest,” Bhatia said during a recent analysts’ call to discuss the airline’s first quarter financial results.
