Can the company that operates the airport you fly from also own the airline you’re boarding? The short answer, according to the government, is yes. But there is an important caveat.
In a written reply in Parliament, the government clarified that there is no policy barring airport operators from owning or operating scheduled airlines. At the same time, it confirmed that the Airports Authority of India (AAI) has received a request seeking a waiver from existing cross-holding restrictions, although the proposal is yet to be examined by the Ministry of Civil Aviation.
The clarification comes weeks after the issue emerged as a subject of debate within the aviation industry. Reports last month said Adani Airport Holdings had sought a waiver from cross-holding restrictions under its airport concession agreement, triggering speculation that the group was looking to enter the airline business.
Adani Enterprises, however, later denied the reports, saying it was . The company clarified that while a waiver had been sought in relation to the cross-holding provisions in its concession agreement, it should not be interpreted as an indication of plans to start an airline.
Against this backdrop, the government’s parliamentary reply makes one thing clear: there has been no change in government policy because there was never a blanket prohibition on airport operators owning airlines in the first place.
The confusion stems from the fact that government policy and airport concession agreements are two different things.
While the government says there is no overarching policy preventing airport operators from owning airlines, some public-private partnership (PPP) airport concession agreements contain cross-holding clauses. These contractual provisions restrict airport operators from holding more than a specified stake in a scheduled airline unless a waiver is granted.
In other words, an airport operator may not be barred by government policy from entering the airline business, but it could still be restricted by the terms of the concession agreement under which it operates an airport.
That is why the waiver request assumes significance.
The government told Parliament that the AAI has received a request to waive the cross-holding restriction. However, it added that the proposal has not yet been examined by the Ministry of Civil Aviation. It did not identify the applicant in its reply.
Any decision on the request could determine whether the applicant can invest in or operate a scheduled airline without breaching the terms of its concession agreement.
The issue has drawn attention because the country’s domestic aviation market is dominated by two major players — IndiGo and the Air India Group. Reports last month suggested the government was examining whether relaxing cross-holding restrictions could pave the way for airport operators to enter the airline business, potentially encouraging greater competition in the sector.
At the same time, the proposal has sparked debate over whether companies that own and operate airports should also be allowed to own airlines.
Critics argue such a structure could create potential conflicts of interest in areas such as airport infrastructure, slots and passenger facilities, while supporters say similar ownership structures exist in several international markets and could attract greater investment into India’s aviation sector.
For now, the government’s clarification settles one part of that debate: there is no government policy preventing airport operators from owning airlines. The remaining question is whether the contractual restrictions governing some privately operated airports should also be relaxed—and, if so, under what safeguards.