Aviation News: Recently, during the monsoon session of Parliament, the government clarified whether an airport operator can operate its own airline. Let's find out what the government's response was.
The government took a major decision regarding the aviation industry.
Aviation News: In many foreign countries, the company that operates the airport also has its own airline. This system has not yet been seen in India. This raises the question: is it possible that the company that operates the airline can also operate the airport? The Indian government itself has revealed this.
In fact, the government recently responded to this issue during the monsoon session of Parliament. According to the government, yes! The company operating the airport can also operate its own airline. However, certain rules must be followed.
In a written reply to the House,
the government stated in Parliament on Tuesday that there are no rules prohibiting airport operators from owning or operating scheduled airlines. However, some airport contracts contain rules prohibiting cross-holding. These rules prevent an airport operator from acquiring a stake in an airline beyond a specified limit unless it receives a special waiver.
What do the rules say?
There's no direct government restriction on airport operators owning airlines. However, some PPP-model airport agreements contain conditions that prevent the airport operator from taking a majority stake in a scheduled airline. Therefore, some companies may need to seek a waiver of this condition in their contracts to enter the airline business.
The government stated that the Airports Authority of India has received a request for relaxation of cross-holding regulations. However, the Ministry of Civil Aviation has not yet taken any decision on this proposal. In its response, the government did not specify which company made this request.
Why this discussion took place in the House:
It should be noted that just last month, reports emerged that Adani Airport Holdings had requested an exemption from cross-holding rules in its airport contracts. Following this, it was suggested that the Adani Group was launching its own airline. This government decision holds significance. However, the Adani Group later denied such claims, stating that the exemption request pertained only to cross-holding rules in its airport contracts, and that there were no discussions about launching an airline.
