The government's proposal to relax airport-airline ownership rules raises serious concerns about market dominance and consumer welfare. If the Adani Group, already the largest private airport operator, also owns an airline, it could create a vertically integrated monopoly that squeezes out competitors.
Adani controls seven key airports, including Mumbai, which handles a significant share of international and domestic traffic. As both airport operator and airline, Adani could give its own carrier preferential access to prime slots, lower landing fees, and passenger data, while raising costs for rivals. This would hurt airlines like IndiGo and Air India, which rely on these airports.
Passengers would ultimately pay the price. Reduced competition often leads to higher fares, fewer choices, and lower service quality. The experience of other sectors where Adani has a strong presence, such as ports and coal, shows a pattern of aggressive market consolidation that has raised regulatory eyebrows.
Instead of easing rules, the government should strengthen the AERA and competition watchdog to ensure fair access. A better approach would be to allow airport operators to invest in airlines only under strict conditions, such as independent slot allocation and transparent pricing. Without these safeguards, the reform risks creating a duopoly that stifles innovation and harms India's aviation growth.
The immediate beneficiaries would be a few large players, not the traveling public. Policymakers must prioritize competition over convenience.