The Centre is evaluating a proposal to ease cross-ownership regulations between airlines and airport operators as part of broader efforts to strengthen India’s aviation ecosystem and encourage greater private investment. The review is aimed at aligning the country’s regulatory framework with global practices while supporting the sector’s long-term growth.
Current rules restrict ownership links between airlines and airport operators to prevent conflicts of interest and ensure fair competition. The proposed changes could allow greater participation by aviation companies in airport infrastructure, subject to regulatory safeguards and oversight mechanisms.
Industry stakeholders believe a more flexible cross-ownership regime could unlock fresh investments in airport development, improve operational efficiencies and enhance connectivity as India continues to expand its aviation infrastructure. The move could also support integrated business models involving airlines, airports and related aviation services.
The review comes as India witnesses rapid growth in passenger traffic, airport capacity expansion and increasing private sector participation in the aviation industry. Policymakers are examining the potential benefits and competitive implications before finalising any amendments to the existing rules.
If implemented, the revised framework is expected to provide greater flexibility for investors while maintaining transparency, competition and consumer interests across the aviation sector.
