US Opposes Adani Plan to Shift Cargo Operations to Navi Mumbai Airport, Flags Treaty Concerns Over 'Disproportionate Influence'

Key Points

The US Department of Transportation opposed the Adani Group’s move to shift cargo carriers from Chhatrapati Shivaji Maharaj International Airport to Navi Mumbai International Airport, Bloomberg reported on 13 April 2026. The contention relates to the Group’s increasing influence over India’s aviation sector.

The proposed shift of cargo operations between airports, both of which are owned by the Adani Group, has triggered objections from the United States, the report stated, citing unnamed officials.

The US Department of Transportation reportedly wrote to India’s aviation ministry in March 2026, raising concerns that the relocation push by Adani Airport Holdings Ltd. could violate the bilateral Air Transport Agreement between the two countries.

The communication followed directives issued by the Adani Group to freight operators to move part of their operations to Navi Mumbai International Airport between August 2026 and May 2027. The group cited planned refurbishment work at Mumbai’s existing airport, including upgrades to taxiways, which it said would temporarily reduce cargo handling capacity by nearly 25%.

A spokesperson for Adani Airport stated that the move was a “phased and limited realignment” of select international freighter operations aimed at managing this capacity constraint.

However, US officials have questioned the rationale behind the shift, viewing it as an attempt to channel traffic toward the newly operational Navi Mumbai airport, rather than a purely operational necessity.

At the centre of the dispute is the potential impact on American cargo carriers, particularly FedEx Corp., which is currently the only US cargo airline operating out of Mumbai’s primary airport. Relocation away from the centrally located facility could affect access to key operating slots, which are protected under the bilateral agreement.

See Also: Norway’s $2-Trillion Sovereign Wealth Fund Drops Adani Green Energy from Portfolio over Corruption and Financial Crime Allegations

The US Department of Transportation has warned that any move perceived as forcing American carriers to relocate could prompt consideration of adverse measures under the treaty. In a statement, the department said it is working to ensure that the rights of US carriers are upheld, though it did not provide further details.

The issue was escalated after the American carrier approached US authorities, prompting direct communication with Indian officials. The Indian government has since written to the Adani Group seeking an amicable resolution, according to sources.

The standoff comes against the backdrop of the Adani Group’s expanding footprint in India’s aviation sector. The conglomerate is currently the country’s largest private airport operator, managing eight airports across seven cities. It has also outlined plans to invest $11 billion in bidding for additional airport terminals by 2030.

US officials have indicated that this level of control raises concerns about disproportionate influence over aviation operations in India. They argue that decisions affecting international carriers must remain consistent with bilateral agreements rather than commercial priorities.

Officials noted that the dispute could escalate if not resolved, particularly as it comes shortly after India and the US concluded a trade deal following prolonged negotiations. For Gautam Adani, the standoff emerges at a time when he is already facing a probe by the US Department of Justice, further complicating the group’s international engagements.

The coming months, as the proposed relocation timeline approaches, are expected to be critical in determining whether the issue remains a technical disagreement or evolves into a broader diplomatic concern.

[DS]

Suggested Reading: