Adani Enterprises on Friday denied reports that it was planning to launch an airline, seeking to quell market speculation after recent reports suggested the conglomerate was exploring an entry into commercial aviation.
In a stock exchange filing, the company said reports claiming it was evaluating an airline business were "entirely baseless and factually incorrect" and added that it was not evaluating any proposal to enter the airline business.
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The clarification follows an earlier Economic Times report that the Adani Group had approached the government to seek changes to a privatisation-era rule that bars operators of Delhi and Mumbai airports from owning more than a 10% stake in a scheduled airline. Such a change would have removed a key regulatory hurdle if the group chose to launch a carrier.
The report had said the proposal was linked to the group's expanding aviation ambitions, which span airport operations, ground handling, pilot training, aircraft maintenance and repair, and a planned aircraft manufacturing venture with Brazil's Embraer. It also noted that no final decision had been taken on launching an airline.
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The proposal has drawn opposition from incumbent airlines. IndiGo Managing Director Rahul Bhatia said on Thursday that allowing airport operators to own airlines would create a "massive conflict of interest" and could ultimately hurt consumers. Government officials, however, have said any change would include safeguards requiring operational separation between airport and airline businesses, including restrictions on sharing commercially sensitive information and common management.
The Adani Group is India's largest private airport operator, managing eight airports, including Mumbai International Airport, while also developing the Navi Mumbai International Airport. The group has steadily expanded its presence across the aviation value chain in recent years, though it has now ruled out any plans to enter the airline business.
