Adani shows interest to start airline in letter; denies plans in stock exchange filing
The Adani Group has expressed interest in entering the airline industry to improve connectivity in smaller Indian cities, despite officially denying such plans to stock exchanges. The company is seeking regulatory changes to allow it to operate a carrier while maintaining its airport holdings.
Why it matters
This raises significant corporate governance and transparency concerns regarding how major conglomerates communicate with regulators and investors.
The Adani Group is uniquely positioned to support the development of a next-generation airline, Adani Airport Holdings, the airport arm of the conglomerate, told the Airports Authority of India (AAI), seeking a waiver of the clause that prevents an entity operating Mumbai Airport from holding more than 10% stake in any scheduled carrier, and the removal of any such restrictions from future airport concession agreements, according to a letter reviewed by ET.The letter, written by Arun Bansal, CEO of Adani Airports, was also marked to Jatin Jalundhwala, company secretary of Adani Enterprises, which on Friday denied any plans to start an airline.
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