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The biggest and shocking news of this time is coming out from the Indian aviation sector. Adani Group, one of the largest and leading industrial houses of the country, may soon seek permission to start its own new airline by taking direct entry into the aviation market or is rapidly considering in this direction. According to sources, intensive brainstorming has started on this proposal of Adani Group at the level of the Central Government of the country and the Ministry of Civil Aviation. The government is closely assessing what benefits or disadvantages it can bring to the Indian economy, air passengers and aviation market if a big corporate power like Adani Group enters the country’s aviation sector as an aviation service provider. After this potentially big stir, the excitement in the aviation and business world of the country has intensified.
Adani Group plans to move beyond airport business and take to the skies
Adani Group already successfully operates and manages many major and busy airports in the country (such as Mumbai, Ahmedabad, Lucknow, Thiruvananthapuram, Jaipur and Guwahati). After airport infrastructure, the group now has its sights set directly on the airline market. If Adani Group gets formal permission to start a commercial airline, it will prove to be a huge turning point in the country’s aviation history. Analysts believe that with Adani Group already having a strong hold on airport operations and ground infrastructure, it could be much easier for Adani Group to run and manage its own airline as it will have a strategic edge in terms of runway slots, parking and passenger terminals.
A great brainstorming is going on at the central government level regarding advantages and disadvantages.
Any new corporate house has to go through stringent regulatory and security measures of the government before entering the aviation sector. The Ministry of Civil Aviation and the Directorate General of Civil Aviation (DGCA) are looking at how beneficial the entry of another strong player would prove to be to prevent monopoly situation among the airlines already present in the market (like IndiGo and Air India Group). The government is also considering the economic aspects of whether the entry of new airlines will control air fares or not and whether it will further promote regional connectivity. Along with this, a detailed report is also being prepared on security standards, financial stability and other risks of the market.
What will be the wider impact of this possible step on the Indian aviation sector?
Today the Indian aviation market is one of the fastest growing markets in the world, with the middle class increasingly preferring air travel. In such a situation, if a company with big financial capacity like Adani Group enters the airline sector, then there will be a huge increase in the aircraft fleet and passengers will be able to get state-of-the-art facilities. However, on the other hand, some industry experts are also warning that it may be more challenging for some other small airlines, which are already facing financial crisis and tough competition, to survive in the market. The government is taking vigorous steps to maintain this balance so that there is fair competition in the market and the dominance of any one company does not increase.
What will be the next big policy steps and decisions in the coming days?
Before this proposal of starting an airline by Adani Group can be approved, legal, financial and security related approvals are yet to be taken at many levels. But the way the discussions on this issue are heated in the government corridors, it has become clear that some very big and historic decisions can be seen in the Indian aviation sector in the coming weeks. If the Adani Group is successful in taking off in the skies, the scenario of the country’s aviation sector will completely change and passengers are expected to get new options from fares to services.