Modi Govt Reforms Aviation Sector

The Central Government is considering a major policy reform that could allow airport operators in India to launch their own airline services. The Ministry of Civil Aviation is discussing a proposal to relax existing rules that currently prevent airport operators from holding more than a 10% stake in an airline. If approved by the Law Ministry and the Union Cabinet, major airport operators such as Adani Group and GMR Airports could enter the airline business for the first time.

The move is expected to increase competition in India's aviation sector, which is currently dominated by IndiGo and Air India with nearly 90% of the domestic market. The proposal also aims to encourage new entrants and offer passengers more travel options as India targets 350 airports by 2047. However, aviation experts have raised concerns that airport operators owning airlines could gain an unfair advantage in allocating take-off and landing slots, potentially affecting fair competition.