Adani Group Pushes for More Flights, But Air India and IndiGo Raise Concerns

New Delhi: The Adani Group, India’s largest private airport operator, is heavily investing in the development of eight airports across the country. The conglomerate is urging the government to allow foreign airlines to operate additional flights to increase passenger traffic. However, Indian carriers Air India and IndiGo have raised objections, asking the government to proceed cautiously.

Why Adani Wants More Flights
Adani Airports Holdings is investing billions of dollars in upgrading airport terminals, runways, and passenger facilities, aiming to make airports more attractive to travelers. According to an Economic Times report, the group has requested the government to engage with countries including the UAE, Saudi Arabia, Qatar, Singapore, Indonesia, and Malaysia to secure additional flight rights. Adani claims that more flights will not only maximize the return on its investments but also help position Mumbai as a global aviation hub. The group plans to spend $11.1 billion on airport infrastructure and passenger amenities by 2030.

Concerns from Indian Airlines
Air India, now part of the Tata Group, has warned that permitting additional foreign flights could expose it to unfair competition from wealthy Middle Eastern carriers. IndiGo has also voiced reservations, emphasizing the need to protect domestic airlines before expanding foreign operations.

Impact on Passengers and Investments
An Adani Airports official stated that limiting flight numbers could lead to underutilization of investments and higher airfares for Indian travelers due to restricted capacity. He added that increasing flight options is essential to make Indian airports globally competitive and should not be contingent on how quickly domestic airlines plan to expand.

Government Policy and Historical Context
International flight rights are typically governed by bilateral agreements between countries. Since 2014, the Indian government has restricted additional flight rights for foreign carriers, particularly from the Middle East, until domestic airlines achieve at least 80% utilization of their capacity. While this policy protects local carriers, it has also contributed to rising airfares.

Challenges Ahead
Despite Adani Group’s investments, the expansion of flights depends on domestic airlines’ readiness to operate more aggressively. IndiGo, India’s largest airline, has faced recent operational challenges, including thousands of flight cancellations, causing inconvenience to passengers. The government has recently approved new airlines, but balancing liberalization with protection of domestic investments remains a delicate issue.