New Delhi [India], July 23 : IndiGo Managing Director Rahul Bhatia on Thursday said allowing airport operators to own and operate airlines would create a "massive conflict of interest", saying there is no global precedent for such a model.
Speaking during IndiGo's investor call, Bhatia said, "No global precedent of airport operators owning airlines. Massive conflict of interest if airport operators are allowed to own airlines."
Bhatia said allowing airport operators to own airlines would create a conflict of interest, as airport operators are responsible for allocating critical infrastructure such as airport slots, parking bays and other operational facilities to airlines. He said there is "No global precedent of airport operators owning airlines" and described the arrangement as a "Massive conflict of interest if airport operators are allowed to own airlines."
His remarks come amid media reports saying that major airport operators GMR Group and the Adani Group are seeking approval to enter the airline business by pursuing changes to the existing rules governing airport operators' ownership of scheduled airlines.
Media reports said the move would require changes to the current regulatory framework, which bars operators of New Delhi and Mumbai airports from holding more than a 10 per cent stake in a scheduled airline. The reports added that the government is examining whether the provision can be amended, including seeking legal opinion, with any change requiring Cabinet approval.
Neither the government nor the airport operators have officially announced any change to the existing rules. The developments regarding possible policy changes have so far been reported by the media, citing government sources and company executives.