India is considering a policy change that could allow major airport operators to own and operate airlines, a move aimed at increasing competition in one of the world's fastest-growing aviation markets while raising broader questions about airport governance.

According to multiple published reports, India's Ministry of Civil Aviation is discussing changes to ownership rules that currently prevent the operators of Delhi and Mumbai airports from holding more than a 10% stake in an airline. Any change would require legal review and approval by the country's federal cabinet.

If approved, the proposal could open the door for airport operators including Adani Group and GMR Airports to launch carriers of their own. Policymakers hope additional airlines would help challenge the dominance of IndiGo and Air India, which together account for nearly 90% of India's domestic passenger capacity following years of airline consolidation.

Beyond increasing airline competition, the proposal could reshape the traditional relationship between airports and airlines. Airport operators that also own airlines would likely face heightened scrutiny over how gates, landing slots and other airport resources are allocated to ensure competing carriers receive fair access.

While similar ownership structures would face significant regulatory hurdles in the United States and Europe, the discussions in India could provide an early look at how airport-airline ownership might function in a rapidly expanding aviation market.

The proposal comes as India pursues ambitious aviation growth, with plans to expand its airport network to 350 airports by 2047. The International Air Transport Association also projects the country will add roughly 425 million passengers by 2044, nearly tripling traffic from 2024 levels.

Even if ownership restrictions are eased, any new airline would still face the same aircraft supply constraints affecting carriers worldwide, as delivery delays at Airbus and Boeing continue to limit fleet growth.

While the policy remains under discussion, the proposal is likely to draw attention beyond India as airport operators and regulators continue exploring how airport ownership models may evolve to support future aviation growth.