Summary · why it matters
The Adani Group, led by Indian billionaire Gautam Adani, is considering launching a new airline, according to two people familiar with the matter. If realized, it could upend the competitive landscape in a market dominated by IndiGo and Air India. The plan marks a strategic shift for the group, which operates eight airports across India, including two in Mumbai, and has an 11 billion dollar business expansion strategy. One of the people said a final decision has not been made and the group is still exploring the plan, as aviation is seen as a risky business where profitability is hard to achieve. The people also said the Indian government has informally encouraged business groups, including Adani, to consider setting up an airline. This comes amid intense scrutiny of Air India following a fatal crash in Ahmedabad last year, and after market leader IndiGo faced operational challenges in December that caused widespread flight disruptions. The person said, "It's a tough business, but Mr. Adani wants to explore it in the national interest," adding that the government sees the need for another major carrier given Air India's struggles and IndiGo's crisis. With a net worth of around 89 billion dollars, Adani is Asia's second-richest person, and entering aviation would be one of the boldest bets in his storied career. High taxes, fierce competition, and supply chain disruptions have driven Kingfisher, Jet Airways, and Go First into bankruptcy in India over the past 15 years.