The plan signals a change of strategy for the ports-to-cement group which operates eight airports in India; no final decision has been made
Published Thu, Jul 23, 2026 · 02:57 PM
[NEW DELHI] Indian billionaire Gautam Adani’s group is considering launching a new airline, a move that could potentially reshape competition in a market dominated by IndiGo and Air India, said two sources with direct knowledge of the matter.
The plan signals a change of strategy for the ports-to-cement group, which operates eight airports in India, including two in Mumbai, and has a US$11 billion expansion strategy, but said earlier that it was not looking to enter the airline business.
No final decision has been made, and the group is still considering whether it should start an airline, given it is considered a risky business where it is difficult to make money, said the first of the two sources, who declined to be named as they were not authorised to speak to the media.
Adani’s thinking has emerged after the Indian government privately nudged business groups, including Adani, to consider starting an airline due to scrutiny of Air India since last year’s crash, and market leader IndiGo’s operational challenges that caused widespread air traffic disruptions in December, the source said.
“It’s a difficult business, but Adani wants to consider it in national interest,” the source added, saying the government had realised that Air India’s struggles and the IndiGo crisis meant another major airline was needed.
Adani and India’s civil aviation ministry did not immediately respond to queries from Reuters.
Adani is Asia’s second-richest person with a net worth of around US$89 billion, and an aviation foray would be one of the boldest bets the billionaire has taken in his marquee career.
High taxes, fierce competition and supply chain snags have driven Indian airlines Kingfisher, Jet Airways and Go First into bankruptcy over the last 15 years.
Duopoly concerns
India is one of the world’s fastest-growing aviation markets, but duopoly concerns have weighed as the nation’s largest airline, IndiGo, commands a 65.4 per cent domestic market share and Air India has a 25 per cent share.
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One of the options Adani is also considering is buying a stake in an existing airline, said the second source, adding “all options” were on the table.
In December, India warned IndiGo of regulatory action after it cancelled thousands of flights because of a shortage of pilots, stranding passengers and forcing government action to limit a surge in airfares caused by the crisis.
Air India has faced intense safety scrutiny since last year’s Dreamliner crash that killed 260 people, while another airline, SpiceJet, is battling financial challenges.
Adani’s youngest son, Jeet Adani, who is a director at Adani Airports, told Reuters in December that the group was not interested in the airline business because it has thin margins and the group did not have the “mindset” needed to run a carrier.
“Our comfort and our core competency is in creating hard assets on the ground; long-gestation assets, running them quite efficiently,” he said at the time.
Betting big on infrastucture
Adani has since continued to bet big on aviation infrastructure. Adani Airports has plans to invest more than US$2 billion to develop airport-linked commercial districts across six locations in the country, it said last month, including hotels, retail centres and office space.
Adani has also approached the government seeking to dilute a clause restricting certain airport operators from holding stakes in scheduled airlines, The Economic Times reported earlier on Thursday.
“There are niche examples of airports also owning airlines in markets such as Kyrgyzstan, Thailand and Vietnam, but it would be surprising for a government to permit an operator of a major airport such as Mumbai to own a stake in a scheduled airline,” said independent aviation analyst Brendan Sobie. “Other airlines in India would rightfully be concerned about a possible conflict of interest.” REUTERS
