New Delhi, August 10, 2026 (Yes Punjab News)
The Centre on Monday clarified that there is no government policy prohibiting operators of major airports from holding substantial equity in or operating scheduled airlines, while acknowledging that contractual restrictions under some Public-Private Partnership (PPP) airport agreements may affect such arrangements.
Union Minister of State for Civil Aviation Murlidhar Mohol gave the clarification in a written reply to a question in the Rajya Sabha concerning cross-ownership between airports and airlines.
“There is no such Government Policy restricting operators of major airports from holding substantial equity in or operating scheduled airlines,” Mohol said.
However, the government pointed out that concession agreements governing some airports developed under the PPP model contain specific restrictions.
The Centre said these agreements restrict scheduled airlines and their group entities or associates from holding equity shares in the companies operating the airports as concessionaires.
The government also confirmed that the Airports Authority of India (AAI) has received a request seeking a waiver of the relevant contractual provision.
“Request seeking waiver of the relevant agreement provision has been received by Airports Authority of India (AAI). The matter has not yet been examined by the Ministry of Civil Aviation,” the government said.
The clarification indicates that airport operators are not subject to a blanket policy-level ban on entering the airline business. However, arrangements involving airports operating under particular PPP concession agreements could remain subject to contractual restrictions unless the relevant provisions are waived.
The government has recently also sought to address misinformation concerning aviation-related policy.
Earlier this month, Civil Aviation Minister Ram Mohan Naidu rejected claims that the government was considering blending ethanol with Aviation Turbine Fuel (ATF). He said no such proposal was under consideration and cautioned against spreading misinformation on matters related to aviation safety.
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