Protect Indian airlines before giving foreign ones more access: AAHL CEO

Adani Airports CEO Arun Bansal says Indian carriers must achieve global scale before facing greater foreign competition, reversing his earlier call for an open skies policy

India should prioritise protecting domestic airlines over allowing foreign carriers greater access to the country's aviation market by easing restrictions under bilateral air-service agreements, said Adani Airport Holdings (AAHL) Chief Executive Officer Arun Bansal on Tuesday.

 

Indian carriers should first be allowed to achieve global economies of scale and service standards before being exposed to greater international competition, he said at the Aviation India and South Asia Summit here.

 

Bansal's comments mark an apparent about-turn from his position in January this year, when he had called for easing restrictions on foreign airlines' access to India. He had then stated that bilateral air-service agreements were constraining the country's aviation growth and preventing Indian airports from developing into international hubs. Foreign carriers such as Emirates and Etihad have been asking India to grant more bilateral rights.

 

Bansal, during the Wings India 2026 aviation event in Hyderabad on January 28, had said: "In the short term, growth in Indian aviation is constrained by bilateral (air service) agreements. For India to become a hub, we need an open skies approach."

 

On Tuesday, however, he said: "We need to protect Indian ecosystem. We need to make Indian carriers successful...When they have reached same economy of scale, same global standards, then we can look at global (open) skies."

 

Explaining his position, Bansal said India could not be expected to act in the interest of the entire global aviation industry at the cost of its domestic carriers. "We can't be the world saviour," he said. He added that foreign airlines had used their resources to build competitive advantages and were now advocating open skies for India. He said India should first ensure its airlines could compete with international carriers on equal terms.

 

The comments come amid a separate dispute between AAHL and foreign airlines over the proposed relocation of international flights from Mumbai airport to Navi Mumbai airport. Both airports are managed by AAHL-controlled entities.

 

AAHL wants the carriers to shift 265 of the 770 weekly international departures to Navi Mumbai by the summer season next year as it wants to redevelop Mumbai's Terminal 1 due to safety concerns. Foreign carriers are opposing this move and asking for more time and better coordination.

 

Bansal on Tuesday said airlines could either shift some operations to Navi Mumbai or temporarily suspend their Mumbai services. "Some of the airlines have already decided to move to Navi Mumbai, some of them, like IndiGo, Akasa and Air India," he said. He added that airlines suspending services would get an opportunity to restore them once the redeveloped Terminal 1 becomes operational.

 

On the broader aviation market, Bansal said India needed more large airlines. He said the country deserved to have three national carriers and added that it needed "four of the equal size". Referring to IndiGo and Air India, he said having more financially healthy airlines would benefit airport operators as well, as their growth would translate into more flights and passengers.

 

Asked whether the Adani group would enter the airline business, Bansal ruled out such a move for his airport business. "Airlines is my customer, and I don't think it's a good strategy to compete with your customers," he said. He added that having more successful airlines would be good for the airport business.

 

AAHL currently handles around 100 million passengers annually across its eight airports. The company aims to increase this number to 300 million over the next 10 years, Bansal said. He added that the company was focused on expanding its presence in India rather than actively pursuing international airport opportunities.

 

The company plans to invest $10-11 billion over the next seven years across its aeronautical operations, non-aeronautical businesses and airport city-side developments. Aeronautical revenue comes from airport charges paid by airlines and passengers, while non-aeronautical revenue includes earnings from retail outlets, food and beverages, lounges and other commercial activities. City-side development involves building hotels, offices, retail spaces and other facilities around airports.

 

Bansal said increasing revenue was currently the company's top priority while keeping costs under control. He also said Adani Airports would participate in the government's next round of airport privatisation, which involves 11 airports.