Adani weighs airline launch in India

NEW DELHI, July 23: Indian billionaire Gautam Adani’s group is considering launching a new airline, a move ​that could potentially reshape competition in a market dominated by IndiGo and Air India, said two sources with direct knowledge of the matter.

The plan signals a change of ‌strategy for the ports-to-cement group which operates eight airports in India, including two in Mumbai, and has an $11 billion expansion strategy, but said earlier it was not looking to enter the airline business.

No final decision has been made and the group is still weighing the idea, given it is considered a risky business where it is difficult to make money, said the first of the two sources, who declined to be identified as they were not authorised to speak to ​the media.

The Indian government has privately nudged business groups, including Adani, to consider starting an airline due to scrutiny of Air India since its fatal crash in Ahmedabad last year, and market leader ​IndiGo’s operational challenges that caused widespread air traffic disruptions in December, the source said.

“It’s a difficult business, but Adani wants to consider it in the national ⁠interest,” the source added, saying the government had realised that Air India’s struggles and the IndiGo crisis meant another major airline was needed.

Shares of Adani’s flagship Adani Enterprises shares were down more than 3% on Thursday. ​Its internal discussions about an airline are in initial stages and there is no timeline on a decision.

Adani is Asia’s second-richest person with a net worth of around $89 billion, but an aviation foray would ​be one of the boldest bets the billionaire has taken in his marquee career.

High taxes, fierce competition and supply-chain snags have driven Indian airlines Kingfisher, Jet Airways and Go First into bankruptcy over the last 15 years.

While Adani has fast expanded in sectors like ports and airports, he has since 2024 contended with charges in the United States for paying bribes to secure a solar project – though there has been relief recently as the U.S. authorities have decided to drop ​those charges.