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  4. Airlines launch legal battle against 3-fold tariff hike

Airlines launch legal battle against 3-fold tariff hike

New Delhi, Jul 8: Jolted by a three-fold hike in aeronautical tariff at the IGI Airport here, India's airline operators warned this will sound the death knell for some of the carriers reeling under severe

PTI PTI Updated on: July 08, 2012 16:22 IST
airlines launch legal battle against 3 fold tariff hike
airlines launch legal battle against 3 fold tariff hike

New Delhi, Jul 8: Jolted by a three-fold hike in aeronautical tariff at the IGI Airport here, India's airline operators warned this will sound the death knell for some of the carriers reeling under severe financial stress.






 Claiming that the 345 per cent hike will make Indira Gandhi International Airport (IGIA) the “most expensive” airport in the world, the airlines have knocked at the doors of the Delhi High Court seeking legal intervention.

The airlines under the banner of Federation of Indian Airlines (FIA) contended the hike will not merely hit their operations but also adversely affect the Indian economy. Their petition is expected to come up in the high court on July 10.

They have challenged the April 24 order of Airport Economic Regulatory Authority (AERA) for a hike in the aeronautical tariff, also contending it is unlawful as the tariff has been raised without following the basic norms of the regulated sectors like independent audit prudence check.  

The AERA order permits GMR-promoted Delhi International Airport Limited (DIAL) to increase the aeronautical tariff, which comprises various airport charges like those for landing, parking, housing and ground handling etc, by 345 per cent.

In their petition, the airlines submitted that the hike would prove to be a death knell for many airlines.  

“Some airlines may not be able to survive and would be under serious financial stress,” the petition said.  “The decision will make it very difficult for airlines to recover such high tariff particularly in the present-day scenario when economic and financial situation of airlines are bad,” the FIA said.

The airlines said that the hike in aeronautical tariff will not merely jeopardise the airport operations but will also have an adverse impact on India and its economy.  A DIAL spokesperson told PTI, “DIAL has approached the AERA Appellate Tribunal against AERA's April 24 order.

Although the airlines have raised several issues before the high court, at this stage we are unable to comment, as the matter is sub-judice.” The DIAL has demanded over 700 per cent hike in the tariff.  

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