Adani Enterprises denied planning to launch an airline, calling recent media reports baseless, after speculation over airport rule change.

The company put out a statement on Friday, saying such reports were entirely baseless and factually incorrect, and that it was not evaluating any proposal to enter the airline business. The clarification was also filed with the stock exchanges.

The speculation started because the Adani Group is reported to have approached the government about easing a rule that keeps operators of the Delhi and Mumbai airports from holding more than a 10% stake in any scheduled airline.

That restriction was put in place when the two airports were privatised, precisely to avoid this kind of conflict of interest. Adani is in charge of Mumbai and several other airports, while GMR Group is in charge of Delhi.

The idea did not go down well with rivals. IndiGo Managing Director Rahul Bhatia raised the issue on an earnings call earlier in the week, arguing there is no global precedent for an airport operator also owning an airline.

He called the setup a possible conflict of interest, pointing out that airport operators control things like slots and parking bays that airlines depend on. Air India has reportedly voiced similar concerns.

According to government representatives, any regulation change is still in its early stages and would require Cabinet approval and legal assessment before proceeding.

The broader push is to get more airlines flying in India, partly in response to last year’s IndiGo cancellation troubles.

Even without an airline, Adani’s footprint in aviation keeps growing. It already runs eight airports, including Mumbai, and is building the new Navi Mumbai airport.

Beyond that, the group is in ground handling, cargo, aircraft maintenance and pilot training, and has a proposed tie-up with Brazil’s Embraer to build regional jets in Gujarat, though that plan still needs a firm order of 200 aircraft to move forward.

For now, though, the company says an airline of its own simply is not on the table.

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