Adani denies reports of airline plans, says not evaluating entry into aviation

Adani Enterprises has denied reports that it is evaluating an entry into the airline business. The clarification follows speculation over rule changes and the group's wider aviation ambitions.

In Short

• Adani Enterprises denies plans to enter airline business
• Company refutes media reports and market speculation
• Adani already operates several airports including Mumbai

Adani Enterprises on Friday said it is not evaluating any proposal to enter the airline business, putting to rest recent media reports and market speculation that the group was planning to launch an airline in an exchange filing on BSE.

In a statement, the company said it is "not evaluating any proposal to enter the airline business", denying reports that suggested it was looking to expand into commercial aviation. Reuters reported the clarification.

"We would like to categorically deny recent media reports and market speculation suggesting that the Company is planning to launch an airline. The reports are entirely baseless and factually incorrect," it said in the exchange filing.

The statement comes days after reports suggested the Adani Group was exploring changes to rules that currently prevent operators of Delhi and Mumbai airports from owning more than a 10% stake in a scheduled airline.

Those reports had fuelled speculation that the conglomerate was preparing to launch an airline and challenge the dominance of IndiGo and Air India in India's domestic aviation market.

The latest clarification indicates that Adani is not currently considering such a move.

The group already has a significant presence in India's aviation sector through its airport business. It operates several airports across the country, including Mumbai airport, and has expanded into related businesses such as airport services, cargo handling and maintenance infrastructure.

Recent reports had also linked the group's aviation ambitions to its proposed partnership with Brazilian aircraft manufacturer Embraer, with speculation that an airline could help support aircraft manufacturing plans.

However, Adani has now categorically denied that it is evaluating any proposal to enter the airline business.

The clarification is likely to ease speculation surrounding the group's next move in the aviation sector after a series of reports suggested India could allow airport operators to own airlines in an effort to increase competition in the market.

- Ends