India's Adani Group seeks rule change to clear path for airline venture, ET reports

July 23 (Reuters) - India's Adani Group has approached the government seeking to dilute a clause restricting certain airport operators from holding stakes in scheduled airlines, a move that would enable the conglomerate to launch its own airline, the Economic Times reported on Thursday, citing government officials and company executives.

The Adani Group and India's civil aviation ministry did not immediately respond to Reuters requests for comments.

Here are more details from the report:

• The clause bars operators of New Delhi and Mumbai airports from holding more than a 10% stake in a scheduled airline, the report said.

• The government is seeking the solicitor general's opinion on whether the clause can be amended retrospectively, with any change requiring cabinet approval.

• Adani operates eight airports in India, including Mumbai airport, where it holds a 74% stake.

• The report said the government sees a well-funded new entrant as a way to increase competition in a domestic market where IndiGo and Air India together control about 90% of the market.

• Rival airlines are expected to oppose the proposal over concerns about conflicts in airport slot allocation, the newspaper said.

(Reporting by Aleef Jahan in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)