Indian Billionaire Adani Weighs Airline Launch That Could Reshape Market: Sources

Gautam Adani's group is considering launching a new airline, which could reshape competition in India's aviation market dominated by IndiGo and Air India.

The plan marks a strategy shift for the ports-to-cement group, which operates eight airports in India and has an $11 billion expansion strategy, but previously said it was not entering the airline business.

No final decision has been made; the group is evaluating whether to start an airline or buy a stake in an existing one due to the risky nature of the business.

Adani's thinking emerged after the Indian government privately nudged business groups to consider starting an airline, citing scrutiny of Air India since last year's crash and IndiGo's operational challenges.

Adani Airports plans to invest over $2 billion in airport-linked commercial districts, and the group has approached the government to dilute a clause restricting airport operators from holding stakes in scheduled airlines.