Adani Group Considers Launching New Airline to Challenge IndiGo and Air India

NEW DELHI, Jul 23: Indian billionaire Gautam Adani’s Adani Group is considering launching a new airline, a move that could reshape competition in India’s aviation sector currently dominated by IndiGo and Air India, according to sources familiar with the matter.

The potential airline launch would mark a strategic shift for the ports-to-cement conglomerate, which already operates eight airports across India and has announced an $11 billion expansion plan in the airport sector.

Sources said no final decision has been made, with the group still evaluating the risks of entering an airline business known for its challenging profitability.

The move reportedly follows discussions involving the Indian government, which has encouraged major business groups to consider entering the aviation sector amid concerns over Air India’s operations following last year’s crash and operational challenges faced by market leader IndiGo.

India’s aviation market is among the fastest-growing in the world, but concerns remain over market concentration. IndiGo currently holds around 65.4% of the domestic market, while Air India accounts for about 25%.

Adani Group has also reportedly approached the government seeking changes to regulations that restrict certain airport operators from holding stakes in scheduled airlines.

If launched, an Adani airline would become a major new player in India’s aviation industry and could challenge the dominance of the country’s two largest carriers.