Delhi IGI Airport Operator Takes Central Government to Court

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Business
Newsdesk
17 MAR 2025 | 12:59:35

Delhi International Airport Limited (DIAL), the operator of the bustling Indira Gandhi International Airport (IGIA) in Delhi, has taken legal action against the Indian government. According to reports, in a lawsuit filed on March 10, 2025, DIAL has challenged the government's decision to permit commercial flights from the Hindon Air Force Station in Ghaziabad, just 30 kilometers from IGIA. This move, DIAL argues, threatens the airport’s financial stability and violates key aviation regulations.

DIAL, majority-owned by GMR Airports, claims that the government’s approval of commercial operations at Hindon breaches a rule prohibiting new airports within 150 kilometers of an existing one unless there’s proven passenger demand. With IGIA handling 73.6 million passengers in 2024 yet posting a $21 million loss due to rising government fees, DIAL fears that splitting traffic with Hindon could render Delhi’s primary airport "economically and financially unviable."

Hindon, originally a defence airbase, began hosting commercial flights, including Air India Express services to Bengaluru, Goa, and Kolkata, in March 2025. Operated by the Airports Authority of India (AAI), it aims to ease congestion at IGIA and support the government’s Regional Connectivity Scheme (UDAN). However, DIAL contends that this undermines its operations, especially with the upcoming Jewar airport already in development within the same 150-kilometer radius.

The case, set for a Delhi High Court hearing on March 17, 2025, highlights growing tensions between airport operators and regulatory bodies. DIAL seeks to reverse the government's decision, citing concerns about the impact on IGIA's viability and the potential underutilisation of the airport. The Airports Authority of India, which also holds a stake in DIAL, has not commented on the matter.

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