Adani Airports CEO Arun Bansal has called for a third large-scale national carrier to improve aviation connectivity, while clarifying the group will not enter the airline business itself. The company remains focused on an $11 billion infrastructure expansion to triple its passenger handling capacity over the next decade.
At the Delhi Aviation India 2026 conference held on November 3, 2026, Adani Airports Chief Executive Officer Arun Bansal highlighted the need for a third large-scale national carrier to compete with the current duopoly of IndiGo and Air India. Bansal noted that India’s aviation market is currently missing a third major player, which limits direct international connectivity and forces traffic through foreign hubs. By encouraging the growth of a third carrier, the company aims to keep more passenger revenue within India rather than losing it to international airports.
Critically for investors, Bansal provided a clear clarification regarding the group's strategy. He confirmed that Adani Airports has no intention of starting its own airline. The company believes that entering the airline business would create a conflict of interest, as it would mean competing directly with its own primary customers—the airlines that operate out of Adani-managed airports. This stance is designed to maintain the company’s focus on its core strength: infrastructure development.
For investors, the core narrative is the company's aggressive infrastructure push. Adani Airports is executing a capital spending plan of $10 billion to $11 billion over the next seven years. The primary objective is to increase the group's annual passenger handling capacity from the current 100 million to 300 million over the coming decade. Key projects include the ongoing Phase 2 development of the Navi Mumbai International Airport, which targets a 50 million passenger capacity by 2030, and the redevelopment of Mumbai’s Terminal 1.
Why does an airport operator care so much about airline competition? The business model of an airport operator is directly tied to passenger volume. More airlines operating in the country lead to more flights, more seats, and higher footfall at airports. A third major carrier would effectively increase the competition for routes, potentially driving down ticket prices and increasing the number of flyers. As airports earn revenue not just from aeronautical charges but also from non-aeronautical streams like retail and dining, higher traffic directly supports the company’s bottom line.
However, this expansion path comes with significant financial and operational risks that investors should monitor. A project pipeline worth $11 billion requires massive funding. High capital spending increases debt levels, which can put pressure on the balance sheet if passenger growth does not materialize as expected. Furthermore, airport redevelopments are complex, brownfield projects. These are prone to execution delays and cost overruns, which can temporarily disrupt operational efficiency and impact short-term financial performance.
Moving forward, shareholders will likely track the progress of these large-scale infrastructure projects and the group's participation in upcoming government tenders for 11 additional airports. Regulatory developments regarding airport tariffs and competition norms will also remain vital, as these dictate how much the company can charge airlines and passengers for its services.