India should have three large national airlines, not just two, Adani Airports Chief Executive Officer (CEO) Arun Bansal said on Tuesday. He also said the company plans to invest $10-11 billion over the next seven years in Indian airports and related businesses.
Air travel in India is growing fast. His comments show how a big airport operator sees that growth and what it plans to build for it.
What happened
Bansal spoke at Delhi Aviation India 2026, an aviation industry event. His remarks were reported by Economic Times and The Hindu BusinessLine. Both reports give the same main points and the same numbers.
"I think India deserves to have three national carriers," he said. A national carrier is a large home airline that flies widely within the country and abroad. Bansal said IndiGo and Air India could be counted as two such airlines, "but we need a third of their equal size."
He also said India should "protect Indian airlines first". In his view, Indian airlines must first reach global economies of scale and service standards. Economies of scale means being big enough that the cost of each seat falls. Only after that should India consider a broader open-skies approach. Open skies means fewer limits on foreign airlines flying in and out of the country.
The numbers
| Item | Now | Target or plan |
|---|---|---|
| India's passenger traffic | Around 300 million (30 crore) | 1.1-1.2 billion (110-120 crore) by 2040-45 |
| Adani Airports passengers | Around 100 million (10 crore) a year | 300 million (30 crore) over the next 10 years |
| Navi Mumbai airport, Phase 2 | Being speeded up | Capacity of 50 million (5 crore) by 2030 |
| Mumbai airport, two terminals | 55 million (5.5 crore) capacity | Nearly 65 million (6.5 crore) after Terminal 1 work |
| Adani Airports investment | Not applicable | $10-11 billion over seven years |
| Next privatisation round | Not applicable | 11 airports |
The table puts today's figures next to the targets Bansal gave. Crore figures are our calculation from the million figures. Targets are plans and forecasts, not results.
By our calculation, the company wants to triple its passenger count in ten years, from about 100 million to 300 million. The Mumbai Terminal 1 work would add about 10 million passengers (1 crore) of capacity, also our calculation. Bansal described India's overall traffic jump as nearly fourfold.
Why the growth needs more planes and airports
Bansal said meeting the expected demand needs three things: more aircraft, bigger airport infrastructure and changes in rules. Airport infrastructure means runways, terminals and other facilities that handle planes and passengers.
He also pointed to a gap in direct flights. Many Indian travellers change planes at foreign hubs, which are big transfer airports, to reach Europe and the US. Economic Times named hubs in the Middle East, while The Hindu BusinessLine used the term West Asia, which refers to the same region. For more direct flights, he said, airlines must add planes, airports must add capacity and regulators must make the needed changes.
What Adani Airports plans
The $10-11 billion plan covers three areas: airport infrastructure, non-aeronautical businesses and city-side development in India. Non-aeronautical income is money an airport earns from things other than flights, like shops, food courts and parking. City-side development means building on airport land that faces the city, such as hotels or offices.
Bansal said the company's airports handle around 100 million passengers a year now. It aims to reach 300 million over the next decade. Adani Airports will also take part in the government's next airport privatisation round, which covers 11 airports. In such a round, the government hands the running of its airports to private companies.
In Mumbai, the company is speeding up Phase 2 of Navi Mumbai airport. This phase is planned to have a capacity of 50 million passengers by 2030. At the existing Mumbai airport, the redevelopment of Terminal 1 is expected to lift the combined capacity of the two terminals from 55 million to nearly 65 million passengers.
Bansal said the company will keep its focus on India. It will look at airports abroad only if a particularly attractive opportunity comes up.
What this means for a common investor
This news is about plans and views, not about profit or sales. No financial results were shared. So it tells you where the company wants to go, not how well it is doing today.
If you follow airline shares, the three-carrier idea is worth knowing about. It touches airlines such as IndiGo, whose recent share moves and quarterly loss we covered earlier. Bansal's call to protect Indian airlines is a policy view. The government, not an airport company, decides such policy. You can read more company news on our business page and sector updates on our markets page.
Risks to keep in mind
- The 2040-45 traffic number is a long-range forecast. Forecasts this far ahead can change a lot.
- Company targets, like 300 million passengers in ten years, are goals. They may be delayed or missed.
- Big projects such as Navi Mumbai Phase 2 can face cost rises and delays.
- Bansal said growth also needs rule changes. These depend on regulators and are outside the company's control.
- The reports do not say how the $10-11 billion will be funded. Large spending plans often need fresh borrowing or new capital, which carries its own risks.
- Economic Times has separately reported that foreign airlines and Adani Airports are deadlocked over a shift at Mumbai Airport. Such disputes can affect plans.
What to watch next
- Details of the government's next privatisation round of 11 airports, and whether Adani Airports wins any of them.
- Progress on Navi Mumbai Phase 2 against the 2030 target.
- Work on Mumbai Terminal 1 and the rise in capacity to nearly 65 million.
- Any government step on a third large airline or on open skies.
- Official statements and stock exchange filings on the BSE or NSE website for confirmed details.
Words explained
- CEO: Chief Executive Officer. The top boss who runs a company day to day.
- National carrier: A large home airline that flies widely within the country and abroad.
- Open skies: A policy that lets foreign airlines fly more freely to and from a country, with fewer limits on routes and seats.
- Economies of scale: Costs per unit fall as a business grows. A big airline spreads its costs over more seats, so each seat costs less.
- Hub: A large airport where passengers change planes to reach their final city.
- Capacity: The number of passengers an airport is built to handle.
- Non-aeronautical business: Airport income not linked to flights, such as shops, food and parking.
- Privatisation: When the government hands the running of an asset, such as an airport, to a private company.
Sources: Economic Times, The Hindu BusinessLine.
This article is for information and education only. It is not investment advice. MarketUpDown is not registered with SEBI as an investment adviser or research analyst. Read our disclaimer.