The Center is considering lifting airport ownership restrictions

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The center is considering removing restrictions on cross-ownership between airport operators and airlines, which could allow airport companies to own airlines and airline groups to acquire stakes in airports, according to people familiar with the matter.

“The civil aviation ministry is preparing a concept note for consultation with NITI Aayog and other government ministries on the proposed changes,” said a person familiar with the discussion, adding that such a proposal would require final approval from the Union Cabinet.

The proposal comes amid Air India’s interest in expanding into the airport business, one person aware of the discussions added, but senior Air India sources denied this. Air India is jointly owned by Tata Sons, which holds a 74.9% stake, and Singapore Airlines, which owns the remaining 25.1%.

Some existing airport concession agreements impose restrictions on airline ownership. For example, the concession agreements for the Noida International Airport and Navi Mumbai International Airport projects stipulate that no scheduled airline, cargo airline or their affiliates shall own more than 26% of the concessionaire’s subscribed and paid-up capital.

Ownership restrictions are even stricter for Delhi and Mumbai airports. Under the original privatization framework, the total equity of all Indian scheduled airlines was limited to 10%, while foreign airlines were not allowed to hold any equity in airport operating companies.

These restrictions also work in reverse, effectively preventing airport operators from owning or controlling airlines. Adani Group, which operates eight airports and has businesses including ports, power and renewable energy, has so far said it is not interested in entering the airline business amid growing debate over the dominance of Air India and IndiGo, which have a duopoly between them.

The talks come at a time when the Ministry of Civil Aviation has submitted a proposal to the Public Private Partnership Appraisal Committee (PPPAC) for the third round of airport privatization of 11 airports, which it will also submit to the government for its approval.

In 2019, the Tata Group, through a consortium with Singapore’s sovereign wealth fund GIC, proposed to acquire a 55.2% stake in GMR Airports, but the deal did not materialize due to a conflict of interest involving the Tatas’ stake in Vistara and AirAsia India.

Vistara has since been merged with Air India, while AirAsia India has been integrated into Air India Express, both part of the Tata Group airline portfolio.

Queries were sent to the Tata Group and Air India but no response was received by the time of publication.

Published – 22 Jul 2026 21:17 IST