‘Entirely baseless and factually incorrect’: Adani Enterprises denies plans to enter airline business

Adani Enterprises on Friday dismissed reports suggesting that the group was planning to enter the airline business, saying it has no proposal under consideration to launch a commercial carrier and describing recent media speculation as "entirely baseless and factually incorrect."

In a clarification filed with the stock exchanges, the company sought to put an end to speculation that had gathered pace following reports linking the Adani Group's expanding aviation presence with a possible airline venture.

“We would like to categorically deny recent media reports and market speculation suggesting that the Company is planning to launch an airline. The reports are entirely baseless and factually incorrect,” the company said in its filing.

It further added that it is "not evaluating any proposal to enter the airline business."

The clarification comes after reports indicated that the Adani Group had approached the government seeking changes to an existing rule that prevents operators of Delhi and Mumbai airports from holding more than a 10% stake in a scheduled airline. The restriction was introduced during the privatisation of the two airports to avoid conflicts of interest.

The reports had fuelled speculation that easing the ownership norms could pave the way for the conglomerate to launch its own airline. However, the company has now ruled out any such plans.

The issue also sparked debate within the aviation industry. IndiGo Managing Director Rahul Bhatia recently argued that allowing airport operators to own airlines could create a "massive conflict of interest" and adversely affect consumers. Government officials have indicated that any policy revision, if considered, would include safeguards to ensure operational separation between airport and airline businesses.

Although it has denied plans to operate an airline, the Adani Group has steadily strengthened its footprint across the aviation ecosystem. It is India's largest private airport operator, managing eight airports, including Mumbai International Airport, while also developing the Navi Mumbai International Airport.

Beyond airport operations, the group has expanded into airport services, ground handling, cargo logistics, maintenance, repair and overhaul (MRO) facilities, pilot training and a proposed aircraft manufacturing partnership with Brazilian aerospace company Embraer.