Recently, Gautam Adani has diversified into numerous sectors. Adani now wishes to launch another company: an airline company. As per media reports, Adani wishes to soar to greater heights through launching an airline company. The Adani Group has requested the government to alter a regulation that bans owners of the two busiest airports in India-New Delhi and Mumbai-from having more than 10% stake in any scheduled airline.

In case this regulation is altered, the Adani Group-which has interests in energy and defense-would be able to launch its airline and diversify into the aviation sector.

The Adani Group is already involved in aviation: apart from operating eight airports, the Adani Group provides pilot training, aircraft maintenance and repair, and ground handling services. Currently, Adani holds 74% share in the Mumbai airport, while GMR Airports holds 74% share in the Delhi airport.

According to media reports, the ministry is consulting Solicitor General Tushar Mehta regarding the legal validity of amending this rule with retrospective effect. The rule was originally incorporated into the agreements signed during the privatization of these two airports in 2006. Any such amendment would require Cabinet approval.

Media reports indicate that the central government is keen on having a well-funded airline company that can break the duopoly of IndiGo and Air India and foster competition. Together, these two companies command a market share of over 90% in the domestic market.

It is worth noting, however, that in December of last year, Gautam Adani's son, Jeet Adani, had denied any interest in the airline business. Jeet Adani had stated that this did not align with the company's capital discipline. It is being suggested that this shift in the group's thinking is largely linked to its plans to set up an aircraft manufacturing facility in collaboration with the Brazilian company Embraer.

Government approval of Adani's proposal would also pave the way for airlines like IndiGo and Air India to acquire stakes in airports.

Recently, Gautam Adani has diversified into numerous sectors. Adani now wishes to launch another company: an airline company. As per media reports, Adani wishes to soar to greater heights through launching an airline company. The Adani Group has requested the government to alter a regulation that bans owners of the two busiest airports in India-New Delhi and Mumbai-from having more than 10% stake in any scheduled airline.

In case this regulation is altered, the Adani Group-which has interests in energy and defense-would be able to launch its airline and diversify into the aviation sector.

The Adani Group is already involved in aviation: apart from operating eight airports, the Adani Group provides pilot training, aircraft maintenance and repair, and ground handling services. Currently, Adani holds 74% share in the Mumbai airport, while GMR Airports holds 74% share in the Delhi airport.

According to media reports, the ministry is consulting Solicitor General Tushar Mehta regarding the legal validity of amending this rule with retrospective effect. The rule was originally incorporated into the agreements signed during the privatization of these two airports in 2006. Any such amendment would require Cabinet approval.

Media reports indicate that the central government is keen on having a well-funded airline company that can break the duopoly of IndiGo and Air India and foster competition. Together, these two companies command a market share of over 90% in the domestic market.

It is worth noting, however, that in December of last year, Gautam Adani's son, Jeet Adani, had denied any interest in the airline business. Jeet Adani had stated that this did not align with the company's capital discipline. It is being suggested that this shift in the group's thinking is largely linked to its plans to set up an aircraft manufacturing facility in collaboration with the Brazilian company Embraer.

Government approval of Adani's proposal would also pave the way for airlines like IndiGo and Air India to acquire stakes in airports.