The Union Government on Monday said that there is “no government policy restricting major airport operators from holding substantial equity in or operating scheduled airlines.”

In a response in Rajya Sabha, Minister of State for Civil Aviation Murlidhar Mohol further confirmed that AAI had received a request seeking a waiver of the relevant agreement provision. However, it said the request has not yet been examined.

MoS response came to an unstarred question by CPI(M) MP John Brittas on cross-ownership between airports and airlines.

The Airports Authority of India (AAI) has received a request seeking a waiver from contractual restrictions that could allow an airport operator to enter the airline business.

“There is no such Government Policy restricting operators of major airports from holding substantial equity in or operating scheduled airlines. However, the extant contractual agreements relating to some airports under Public Private Partnership (PPP) contain certain restrictions on scheduled airlines and their group entities/associates from holding Equity Share of the Concessionaires,” the government said.

“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.

Earlier on the matter, the IndiGo Managing Director Rahul Bhatia had said that allowing airport operators to own airlines would create a “massive conflict of interest” and could hurt consumers.

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