Why are Adani Group's demands for more flying rights facing resistance from Air India and IndiGo?

December 30, 2025 at 11:30 PM•3 min read

Adani Group demands India increase international flight capacity at its airports, clashing with Air India and IndiGo over fears of Gulf carrier competition and the current bilateral

Key Points

1Adani Group is investing $11.1 billion by 2030 to upgrade its eight airports, including the new Navi Mumbai airport, and needs more international traffic to justify the expenditure.
2Air India and IndiGo oppose granting more international flying rights, citing the risk of 'unfair competition' from Gulf carriers that could divert long-haul transit traffic away from Indian hubs.
3India's National Civil Aviation Policy (NCAP) of 2016 restricts new bilateral air service agreements until Indian carriers utilize 80% of their existing capacity, a stance that has reportedly led to higher air ticket prices.
4The conflict centers on whether to prioritize airport development as a global hub or protect the market share and investments of domestic Indian airlines.

The Adani Group is urging the Indian government to grant more international flying rights to foreign airlines. This push aims to significantly boost traffic at its eight managed airports. The conglomerate is investing heavily in airport infrastructure. However, this strategy faces strong opposition from India’s two largest airlines, Air India and IndiGo.

Divergent Interests in Aviation Policy

Adani Airports Holdings is investing billions of dollars in upgrades. The group plans to spend $11.1 billion by 2030 on terminals, runways, and passenger amenities. This includes the new airport at Navi Mumbai, which opened to commercial traffic on Christmas Day. The company argues that restricting flight capacity is a "criminal waste of assets". They believe increased access is crucial for Indian airports to become a global aviation hub.

In contrast, Air India and IndiGo have urged caution. They fear that liberalizing the skies will expose them to "unfair competition". This concern is primarily directed at cash-rich Gulf carriers. Air India CEO Campbell Wilson stated that rapid liberalization could undercut investments by Indian entities. IndiGo CEO Pieter Elbers has also supported the government's balanced approach.

The Bilateral Rights Standoff

International flying rights are governed by bilateral air service agreements (BASAs). These agreements are reciprocal between two nations. Since 2014, the Indian government has maintained a cautious stance on extending these rights. The goal is to protect domestic airlines and develop local airports into transit hubs.

The National Civil Aviation Policy (NCAP) of 2016 set a key guideline. It states that additional flying rights are generally not granted to overseas carriers. This is unless Indian carriers utilize at least 80% of their existing capacity.

This policy has created capacity constraints. Demand for international travel has surged, but foreign airlines cannot deploy additional capacity. For instance, seat entitlements for flights to Dubai have not increased since 2014. This shortage of available seats has reportedly led to a spike in air ticket prices for consumers.

Adani’s Hub Vision

Adani Airports Holdings, which operates eight airports, is pushing for new negotiations. The group has urged the government to start talks with countries like the UAE, Saudi Arabia, Qatar, Singapore, Indonesia, and Malaysia. They believe allowing more international flight capacity will transform India’s financial capital into a major global hub. This would allow more direct, long-haul connections.

Indian carriers, however, worry about passenger migration. They fear travelers will be diverted to Middle Eastern hubs. Gulf airlines use their large wide-bodied aircraft to fly passengers to Europe and North America via their home bases. Campbell Wilson noted that over 70% of traffic carried by some foreign carriers from India is transit traffic. This highlights the risk to Indian airlines' long-haul ambitions.

This debate pits airport infrastructure investment against national carrier protection. The outcome will significantly shape India's future as a global aviation player. For more commercial aviation news, visit flying.flights. The International Air Transport Association (IATA) continues to monitor the impact of bilateral agreements on global connectivity.