Akasa Air CEO backs proposal for airport operators to own airlines in India

Vinay Dube says regulatory safeguards can address concerns while encouraging greater competition, consumer choice and growth in India’s fast-expanding aviation sector.

Akasa Air Founder and CEO Vinay Dube has expressed support for a proposal that would allow airport operators to own airlines, saying increased competition in the aviation sector would benefit consumers. His comments come amid reports that the government is considering relaxing existing restrictions on airport-airline ownership.More Competition In Aviation NeededSpeaking to PTI, Dube said he was confident that the government would carefully evaluate all factors involved before introducing any changes. He said policymakers are aware of the implications of allowing a private company to operate both an airport and an airline.Dube said India needs more airlines and greater competition in the aviation market, adding that consumers should have access to more choices. Akasa Air & BPCL Partner To Advance SAF Adoption In India, To Establish A Framework For Supply & Takeoff Of SAF-Blended ATF At Designated Airports He said the country can and should support multiple airlines to create a stronger aviation ecosystem.“I am 100 per cent sure that the government is cognisant of these considerations and will account for these as it creates its legislature,” Dube said, while supporting the broader objective of expanding competition.The proposal under consideration would allow airport operators to enter the airline business, potentially enabling major airport players to launch their own carriers. Currently, airport operators managing major airports such as Mumbai and Delhi face restrictions on holding significant stakes in airlines.Concerns Over Potential Conflict Of InterestWhile supporting the need for more competition, Dube acknowledged that the government would have to address concerns arising from common ownership of airports and airlines.The issue has sparked debate among aviation stakeholders, with critics warning that airport-owning companies could potentially favour their own airlines through decisions related to airport slots, facilities and operations. IndiGo Co-Founder and Managing Director Rahul Bhatia recently raised concerns over the proposal, stating that allowing airport operators to own airlines could create a “massive conflict of interest”.The government is reportedly examining the proposal as India’s aviation sector seeks more players after the consolidation of the market around IndiGo and Air India. The collapse of airlines such as Jet Airways and Go First, along with industry consolidation, has reduced competition in recent years.Supporters of the move argue that allowing new airline ownership models could encourage investment and increase passenger options, while opponents believe strong safeguards would be necessary to ensure fair competition.