Airlines duopoly not a concern as long as airport operators have negotiating power: Jeet Adani

Mumbai, Dec 22 (PTI) Monopoly or duopoly in the airline sector is not a matter of concern for airport operators as long as they have negotiating power, said Adani Group's airport business director Jeet Adani.

The recent near-collapse of IndiGo, which flies around 65 per cent of the total domestic passengers, and consequent massive jump in the airfares, brought back the issue of the duopoly in the country's airline industry.

"Not really ... not for us. A duopoly only becomes a cause for concern when you don't have negotiating power," Adani said in response to a question on the impact of duopoly in the Indian airlines segment on airport operators.

Following the collapse of Jet Airways, Kingfisher and GoFirst in the last decade, and the consolidation of the Tata Group's aviation business that saw the merger of Air Asia India into Air India Express and Vistara into Air India, there is a kind of duopoly situation in the country's fast-growing aviation space.

IndiGo and Air India Group together command more than 90 per cent of the domestic market share.

"Because of the nature of the two businesses (one airline and the other airport), I think there is equal negotiating power across both sides, regardless of a duopoly or a monopoly," Adani said.

Adani Group, currently, operates seven airports, including the Mumbai airport. The Navi Mumbai airport, also developed by the group, is set to start commercial operations from December 25.

Getting slots at busy airports is one of the challenges for airlines as they look to expand and have more connectivity from metro airports like the Mumbai airport, which is a capacity-constrained airport.

On the issue of a recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruling on Rs 50,000 crore under recoveries from the airlines for the period between 2009 and 2014 on account of UDF charges at Mumbai and Delhi airports, Adani said the matter is being evaluated by the Supreme Court.

"But at the end of the day, we are responsible citizens and responsible corporations. We will not implement something that becomes a killer to the industry," he said.

The Federation of Indian Airlines has moved the Supreme Court, challenging the July 1 order of the telecom tribunal over the principles for the determination of aeronautical tariff in respect of airport operators.

"So even if we win, whatever the decision has to be done, if we win it also, we will work with the airlines to see how we can best ... to make sure that there is no sort of life or death kind of situation that happens because of this..," Adani said. PTI IAS MR