Rahul Bhatia, promoter and MD of India’s largest carrier IndiGo
NEW DELHI: Rahul Bhatia, promoter and MD of India’s largest carrier IndiGo, has opposed the proposed move to allow airport operators in India to own and run airlines too. “There is no global precedent for this. It raises massive conflict-of-interest concerns, and it is unclear how such a move would serve consumers’ interests,” he said at a post earnings call.Bhatia’s Thursday comments come as govt is considering to dilute provisions that disallow operators of Delhi and Mumbai airports to own more than 10% stake in a scheduled airline. While the Adani Group, which runs Mumbai airport, is likely to make the first move by picking up stake in an existing airline or investing in a startup, the GMR Group, which operates Delhi’s IGIA, could do so at a subsequent stage.The news has resulted in Interglobe Aviation’s shares falling for two consecutive days as investors perceive the airline, which controls two-thirds of the domestic aviation market, to be a loser in case the move goes through.Senior aviation ministry officials said a country with the economic potential of India should have multiple airlines and not just a duopoly with IndiGo and Tata’s Air India group.Meanwhile, the Competition Commission of India (CCI) Thursday invited public comments on a commitment proposal by IndiGo in a probe following its last Dec schedule collapse.The airline has proposed temporarily releasing domestic slots at airports. “Post such handover, the airport operator/authority may determine re-allocation of such slots/dates for routes, as deemed fit,” the CCI notice says.
