The government on Monday clarified in Parliament that there is no policy restricting operators of major airports from holding substantial equity in or operating scheduled airlines, but acknowledged that contractual restrictions in some public-private partnership (PPP) airport agreements can prevent such cross-ownership.The clarification assumes significance amid the controversy over a purported communication from the Adani group seeking permission to enter the airline business, which TMC MP Mahua Moitra circulated on Monday. The Adani group had earlier denied seeking such permission.Replying to a Rajya Sabha question specifically on the cross-ownership of airports and airlines, Minister of State for Civil Aviation Murlidhar Mohol said there was no government policy barring airport operators from owning or operating scheduled airlines.However, he said, “the extant contractual agreements relating to some airports under Public Private Partnership (PPP) contain certain restrictions” on scheduled airlines and their group entities or associates holding equity in the airport concessionaire.More significantly, the government disclosed that the Airports Authority of India (AAI) has received a request seeking waiver of the relevant contractual provision. “The matter has not yet been examined by the Ministry of Civil Aviation,” the Ministyer told Parliament.Last month, businessline had reported that the Centre was working on a package of sweeping aviation reforms aimed at easing entry into the airline sector.Among the various steps outlined to encourage private participation in setting up new airlines was lifting restrictions under existing concession agreements, such as the one entered into by Adani Airports and GMR Airports, that constrain airport operators from operating airlines.The government’s response in Parliament on Monday did not identify the airport operator that had sought the waiver. But the disclosure comes against the backdrop of the communication circulated by Moitra, which purportedly relates to the Adani group’s interest in entering the airline sector.The parliamentary question, raised by CPI(M) MP John Brittas, had specifically asked whether the government was considering relaxing the policy restricting major airport operators from holding substantial equity in or operating scheduled airlines.It also asked whether airport operators or other stakeholders had sought such a relaxation and whether the government had assessed its implications for competition, conflicts of interest, slot allocation, airport charges, ground handling and fair access to airport infrastructure for competing airlinesThe government’s answer effectively drew a distinction between a government-imposed prohibition and restrictions embedded in individual airport concession agreements. It said the former does not exist, while acknowledging that the latter did, and that at least one request for a waiver has reached AAI.Effectively, what the disclosure in Parliament means any proposed entry of an airport operator into the airline business would not necessarily require a change in national policy. The immediate issue could instead be whether the contractual restrictions applicable to the particular airport are waived.Published on August 10, 2026