MUMBAI- Adani Group is evaluating the possibility of launching a new airline, a move that could increase competition in India’s aviation market, which is currently led by IndiGo (6E) and Air India (AI). The proposal remains under consideration, with no final decision announced.
The development comes as the infrastructure conglomerate expands its airport business, operating eight airports including Mumbai Airport (BOM) and Navi Mumbai International Airport (NMIA). The group is also reportedly exploring investment in an existing airline as another possible route into commercial aviation.
Adani Group Evaluates Entry into India’s Airline Market
Indian billionaire Gautam Adani’s group is considering entering the airline business, according to two people familiar with the discussions.
The move would mark a significant shift for the conglomerate, which has previously stated that it was not interested in operating an airline despite its growing presence in airport infrastructure.
The discussions are still at an early stage, and the company has not made a final decision. Sources said the group is carefully assessing the financial risks associated with the airline industry, where high operating costs and intense competition have made profitability difficult for many carriers.
According to one source, the Indian government has privately encouraged several business groups, including Adani Group, to evaluate the possibility of launching a new airline.
The reported discussions come after increased scrutiny of Air India following last year’s fatal Boeing 787 Dreamliner crash and operational disruptions experienced by IndiGo in December due to a pilot shortage.
Reuters reported that Adani Group and India’s Ministry of Civil Aviation did not immediately respond to requests for comment.
Market Dominated by IndiGo and Air India
India remains one of the world’s fastest-growing aviation markets, but domestic competition is concentrated between two major airlines.
IndiGo (6E) currently holds around 65.4% of the domestic market, while Air India (AI) accounts for approximately 25%. This concentration has raised concerns about limited competition and passenger choice.
The reported interest from Adani Group comes at a time when both leading carriers have faced operational challenges.
IndiGo cancelled thousands of flights in December after a shortage of pilots disrupted operations across the country. The Indian government warned the airline of possible regulatory action as widespread cancellations left passengers stranded and contributed to higher airfares.
Air India has also been under increased regulatory and public scrutiny following last year’s Boeing 787 Dreamliner accident that claimed 260 lives. Meanwhile, SpiceJet (SG) continues to face financial challenges as it works to stabilize its operations.
Stake Purchase Also Under Consideration
Alongside the possibility of creating a new airline, Adani Group is also evaluating the option of acquiring a stake in an existing carrier.
According to one source, all strategic options remain under review. An investment in an established airline could provide a faster path into the aviation sector while reducing some of the challenges associated with building a new airline from the ground up.
No details have emerged regarding any specific airline that may be under consideration.
Previous Position Focused on Airport Infrastructure
The reported discussions represent a notable change from the group’s previous public position.
In December, Jeet Adani, Director of Adani Airports, told Reuters that the company had no plans to enter the airline business because commercial aviation operates on thin profit margins and did not align with the group’s business expertise.
He stated that Adani Group’s strength lies in developing and operating long-term infrastructure assets rather than managing airlines.
Despite that position, the company has continued to expand its aviation infrastructure portfolio. Adani Airports recently announced plans to invest more than US$2 billion in airport-linked commercial developments across six Indian cities. The projects include hotels, retail centres and office spaces designed to strengthen airport ecosystems.
Regulatory Challenges Could Influence Decision
Adani Group has also reportedly approached the Indian government seeking changes to regulations that currently restrict certain airport operators from owning stakes in scheduled airlines.
Any regulatory changes could play an important role if the group decides to pursue an airline investment or establish a new carrier.
Independent aviation analyst Brendan Sobie told Reuters that while there are examples of airport operators owning airlines in countries such as Kyrgyzstan, Thailand and Vietnam, allowing a major airport operator like Mumbai Airport to own an airline could raise concerns over potential conflicts of interest.
He noted that competing airlines could question whether equal access and fair competition would be maintained if a major airport operator also controlled an airline.
What the Proposal Could Mean for Indian Aviation
If Adani Group proceeds with either launching a new airline or investing in an existing carrier, the move could reshape India’s competitive aviation landscape.
A new large-scale airline could reduce the dominance of IndiGo and Air India while increasing capacity, improving consumer choice and encouraging stronger competition across the domestic market.
However, the airline industry remains one of the most challenging sectors globally, with high operating costs, aircraft supply constraints, taxation and pricing pressures continuing to affect profitability. Whether Adani ultimately enters the sector will depend on commercial viability, regulatory developments and broader market conditions.
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