Centre weighs easing cross-ownership rules between airlines and airports
The Indian government is considering relaxing cross-ownership rules between airlines and airport operators. This policy shift could allow airline groups like Tata-owned Air India to acquire stakes in airports, potentially reshaping the aviation industry landscape.
Why it matters
Changing these regulations could lead to significant consolidation in the aviation sector and alter the competitive dynamics between major airline and airport operators.
The Centre is considering removing restrictions on airline ownership in airport operators and vice versa, a move that could pave the way for airline groups such as the Tata Group-owned Air India to acquire stakes in airports, according to people familiar with the matter.
“The Ministry of Civil Aviation is preparing a concept note for consultations with NITI Aayog and other government ministries on the proposed changes,” said a person aware of the discussions, adding that such a proposal will need a final nod from the Union Cabinet.
The proposal comes amid Air India’s interest in expanding into the airport business, the person added. Air India is jointly owned by Tata Sons, which holds a 74.9% stake, and Singapore Airlines, which owns the remaining 25.1%.
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