New Delhi: The government on Monday clarified that there is no government policy preventing major airport operators from holding substantial stakes in or operating scheduled airlines, even as the Airports Authority of India (AAI) has received a request seeking a waiver of certain contractual restrictions that could enable an airport operator to enter the airline business.
Union Minister of State for Civil Aviation Murlidhar Mohol provided the clarification in a written reply to a question in the Rajya Sabha regarding cross-ownership between airports and airlines.
“There is no such Government Policy restricting operators of major airports from holding substantial equity in or operating scheduled airlines,” the minister said.
However, the government noted that certain airports developed under the Public-Private Partnership (PPP) model are governed by contractual agreements that impose restrictions on ownership structures.
“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.
The government also confirmed that AAI has received a request seeking a waiver of the relevant provision in the agreement.
“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.
The response indicates that while there is no overarching policy prohibition on airport operators owning or running airlines, restrictions in specific PPP concession agreements could limit such arrangements unless exemptions or waivers are granted.
Earlier in August, Union Civil Aviation Minister Ram Mohan Naidu rejected claims that the government plans to blend ethanol with Aviation Turbine Fuel (ATF), asserting that there is no such proposal under consideration and cautioning against misinformation relating to aviation safety.
(IANS)
