US Challenges Adani Group's Cargo Shift Plans at New Mumbai Airport
US opposes Adani push to shift cargo carriers to new Mumbai airport
Business Standard
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The US government is opposing the Adani Group's plans to relocate cargo carriers to the new Navi Mumbai International Airport, citing potential violations of the US-India Air Transport Agreement. This dispute raises concerns over Adani's influence in India's aviation sector and may strain diplomatic relations.
- 01The US Department of Transportation has formally opposed Adani's cargo shift plans.
- 02Adani's directive could affect American cargo carriers' operational rights.
- 03The Adani Group controls both major airports in Mumbai, raising concerns about monopolistic practices.
- 04The situation could escalate into a diplomatic issue between the US and India.
- 05Adani is already under scrutiny from the US Department of Justice.
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The US Department of Transportation (DOT) has expressed opposition to the Adani Group's initiative to shift cargo carriers, including FedEx Corp., to the new Navi Mumbai International Airport. This move, scheduled between August 2026 and May 2027, is seen as a violation of the US-India Air Transport Agreement. Adani Airport Holdings Ltd. cited necessary refurbishment at the existing Chhatrapati Shivaji Maharaj International Airport, which would temporarily reduce cargo handling capacity by 25%. The DOT's warning suggests that forcing American carriers to relocate could lead to adverse actions under the treaty. The Adani Group, the largest private airport operator in India, controls both Mumbai airports, raising concerns about its influence on traffic allocation. FedEx is the only American cargo airline currently operating out of Mumbai, and the shift could limit its access to prime slots. This dispute comes at a sensitive time for Adani, who is already facing a probe from the US Department of Justice, and threatens to complicate US-India relations following a recent trade deal.
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If the cargo shift proceeds, it could limit access for American cargo carriers, impacting their operations and potentially increasing costs for businesses relying on these services.
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