Akasa Air Backs Airport-Airline Ownership, Calls For Greater Competition In Aviation

Akasa Air has backed the government's reported proposal to allow airport operators to own airlines, with Founder and CEO Vinay Dube asserting that India needs greater competition in aviation to expand consumer choice and strengthen the sector.

Speaking to PTI, Dube said he is confident the government will carefully address any regulatory and competition concerns before implementing such a policy. While acknowledging that common ownership of airports and airlines raises important considerations, he expressed faith that lawmakers would frame safeguards to ensure a level playing field.

"India needs more competition in aviation," Dube said, adding that the country can and should support multiple airlines capable of serving the rapidly growing travel market. According to him, the broader objective should be to provide passengers with more options while encouraging healthy competition across the industry.

The comments come amid reports that the Centre is examining whether private airport operators should be permitted to establish or acquire airlines. The proposal has triggered debate within the aviation sector over potential conflicts of interest and market fairness.

Earlier, IndiGo Co-Founder and Managing Director Rahul Bhatia cautioned that allowing airport operators to own airlines could create a "massive conflict of interest." A day later, the Adani Group, which operates eight airports across India, denied speculation that it planned to enter the airline business.

India remains one of the world's fastest-growing domestic aviation markets, with rising passenger demand driving expansion plans among existing carriers while attracting interest from potential new entrants.

Akasa Air, which will complete four years of operations on August 7, currently operates a fleet of 40 Boeing 737 aircraft. Since launching commercial services in 2022, the airline has steadily expanded its domestic and international network.

Reinforcing the government's broader vision, Civil Aviation Minister K Rammohan Naidu recently informed Parliament that the Centre remains committed to creating an environment that supports both the growth of existing airlines and the entry of new players, aiming to strengthen competition and improve connectivity nationwide.