New Delhi: India needs more large airlines to meet rising travel demand and support its ambition of becoming a global aviation hub, Civil Aviation Minister K Rammohan Naidu said on Tuesday, adding that the government will examine the implications of airport operators owning stakes in airlines.
Naidu said the country needs at least five airlines operating fleets of 100 aircraft each to fully tap the growing demand for air travel.
The government, he added, wants to expand the aviation sector while ensuring passenger safety and keeping airfares reasonable.
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"It is important for us to plan not only for the aspirations today, but for Viksit Bharat 2047 also," Naidu told reporters on the sidelines of an event to sign agreements for the next phase of the regional connectivity scheme UDAN.
Responding to a question on the Adani Group's interest in acquiring a stake in an airline, Naidu said the government's priority was clear — India needs more airlines.
However, the question of an airport operator also owning or investing in an airline requires closer examination, he said.
"Airports and airlines operating together need some deliberation on that. We are going to see the pros and the cons of it," Naidu said.
He stressed that no decision has been taken and the government would adopt a balanced approach after examining the issue.
Naidu said there is no general provision preventing a private airport operator from operating an airline, though restrictions exist under the Operation, Management and Development Agreements (OMDAs) governing certain major airports operated through public-private partnerships.
"If, let us say, DIAL, which is still a private operator, wants to operate an airline, then there is no rule as such that is stopping them. So, that is why we have to see; we have to take a balanced approach," he said.
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Naidu said the government's broader objective is to provide passengers with more airline options as India's airport network and air traffic continue to expand.
If credible players are interested in entering the airline business, the government supports the broader objective of increasing the number of carriers, he said.
His comments came as the government signed agreements with states and Union Territories for the next phase of UDAN (Ude Desh ka Aam Nagrik), the regional air connectivity programme launched in October 2016.
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