Adani Airports Urges for Easing Foreign Airline Seat Caps to Boost India's Aviation Ambitions

Adani Airports has flagged capacity restrictions on international routes as a near-term constraint on India’s aviation growth, calling for policy changes to support the country’s ambition of becoming a global air travel hub, as per Reuters. 

Seat Caps, Policy Stance and Industry Context 

At a panel discussion during an air show in Hyderabad, Arun Bansal, Chief Executive of Adani Airports, said bilateral air service agreements that cap the number of seats foreign airlines can sell are limiting growth.  

“In the short term, growth in Indian aviation is constrained by bilateral agreements,” he said, adding, “For India to become a hub, we need an open skies approach.” The seat limits are designed to protect domestic carriers but have long been criticised by overseas airlines. 

Emirates has previously stated that demand on India routes exceeds the weekly seat caps under the India–UAE agreement. An Indian government spokesperson did not immediately respond to a request for comment. 

Market Dynamics and Expansion Plans 

India is currently the world’s fastest-growing aviation market. Adani Airports, part of the Adani Group, operates eight airports and plans to bid for 11 more under an expansion strategy valued at $11 billion.  

While airport operators are seeking greater international capacity to support hub development, domestic airlines have backed the continuation of seat caps. Market leader IndiGo has argued that rapid liberalisation of bilateral agreements could undermine Indian carriers that are still in the process of expanding their fleets. 

Read More: Adani Power Increases Electricity Export to Bangladesh! 

Conclusion 

As India’s aviation market scales rapidly, differing views among airport operators, foreign carriers and domestic airlines underscore the policy trade-offs involved in balancing growth, competition and hub development. 

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