Delhi Airport Operator Sues Government Over Commercial Flights from Defence Airbase

The operator of Indira Gandhi International Airport (IGIA), majority-owned by GMR Airports, has filed a lawsuit against the Indian government for permitting commercial flights from the Hindon Airforce Station in Ghaziabad. The case, which will be heard by the Delhi High Court on Monday, challenges the government’s decision, citing concerns over financial viability and regulatory violations.

Delhi International Airport Limited (DIAL), which runs IGIA, argues that the government’s move to allow commercial operations at the defence airbase will make the capital’s main airport “economically and financially unviable.” IGIA, one of India’s busiest airports, handled approximately 73.6 million passengers last year but reported a $21 million loss, primarily due to increased government fees. In contrast, Hindon Airforce Station saw only around 1,400 users as of Sunday.

Regulatory Breach Alleged

According to legal documents, DIAL contends that the government has violated aviation regulations that prohibit the establishment of a new airport within 150 kilometers (90 miles) of an existing one, unless there is sufficient passenger demand. Hindon, located just 30 kilometers (19 miles) from IGIA, now hosts commercial flights, a move DIAL claims is in breach of these rules.

The lawsuit, first reported by Reuters, seeks to overturn the government’s decision, citing media reports that Air India Express began operations from Hindon in March. The state-run Airports Authority of India (AAI), which has a stake in DIAL, has yet to issue a statement on the matter. India’s civil aviation ministry also did not immediately respond to requests for comment.

Concerns Over Competition and Financial Impact

DIAL argues that the introduction of commercial services from Hindon will divert passengers and revenue away from IGIA, which has already been grappling with financial losses. The airport operator is concerned that the government’s decision could create an uneven playing field, affecting long-term investments in infrastructure and services at IGIA.

Additionally, DIAL has raised concerns over a potential conflict of interest, as AAI, which operates Hindon, has access to confidential business information about IGIA’s operations and future strategies.

Legal Battle Ahead

Represented by Trilegal, a prominent Indian law firm, DIAL is pushing for the court to intervene and halt commercial operations at Hindon. The outcome of the case could have far-reaching implications for India’s aviation industry, particularly in terms of regulatory enforcement and competition between existing and emerging airports.

As the legal proceedings unfold, the aviation sector will be closely watching the court’s stance on balancing regional air connectivity with the economic sustainability of major airports like IGIA.