Oligopoly In Aviation? Why Govt Plans A Cap On Airport Bundles For Private Operators

The Finance Ministry has raised concerns over the "oligopolistic nature" of India’s aviation sector as the government prepares to put 11 airports on the block through a new bundling model, with the Civil Aviation Ministry proposing a cap on the number of airport bundles that a single private operator can win. The issue was discussed at the 149th meeting of the Public Private Partnership Appraisal Committee (PPPAC) held on August 4, according to the Record of Discussion issued by the Department of Economic Affairs on August 20. The PPPAC subsequently granted in-principle approval to the proposed privatisation of the 11 airports through five bundles.