Adani Group rejects claims of entering airline business, says no intention as of now

Adani Group company Adani Enterprises has rejected media reports which said that the company is preparing to enter the airline business. The company clarified in the information given to the stock exchange that it is not considering any proposal related to entry into the airline business.

The company said that such news is completely baseless and factually incorrect. This clarification comes after speculations in which it was claimed that Adani Group is exploring the possibility of starting a new airline in India.

News of entry into airline business

In fact, it was being claimed in media reports that Adani Enterprises, the flagship company of Adani Group, now wants to expand its footprint in the airline business. According to media reports, Adani Group has demanded from the government to change the rule which prevents operators of the country’s busiest airports New Delhi and Mumbai from holding more than 10 percent stake in any scheduled airline. This will help this group doing business ranging from energy to defence, to start an airline and increase its reach in the aviation sector.

Adani Group’s presence in airlines business

Actually Adani Group is not operating any airlines but the company is already running 8 airports. Apart from this, it has a strong presence in works like pilot training, aircraft repair and ground handling. Adani currently holds 74 percent stake in Mumbai Airport, while GMR Airports has 74 percent stake in Delhi Airport.

Relief to companies like Indigo, Air India

Companies like Indigo and Air India will get relief after the news of Adani Group not entering the airline business. After Adani Enterprises denied the news of entering the airline business, existing airlines like IndiGo, Air India, Akasa Air and SpiceJet have got a big relief. If Adani Group had entered this sector, competition in the market could have increased further. At present, the company has made it clear that it is not considering any proposal related to starting an airline, due to which the fear of a new big rival coming to the existing players has been averted for the time being.