Airlines move HC against hike in Aeronautical tariff at IGI
Various airlines have launched a joint legal battle against the steep hike in aeronautical tariff at the Indira Gandhi International Airport.india Updated: Jul 08, 2012 23:58 IST
Various airlines have launched a joint legal battle against the steep hike in aeronautical tariff at the Indira Gandhi International Airport.
Moving the Delhi high court against the Airport Economic Regulatory Authority's (AERA) April 24 order of a three-fold hike in the aeronautical tariff, the airlines contended that the move would not only hit their operations but also adversely affect the Indian economy.
The airlines said the move was unlawful as the tariff had been raised without following basic norms of regulated sectors such as independent audit prudence check.
The AERA order permits the GMR-promoted Delhi International Airport Limited (DIAL) to increase the aeronautical tariff, which comprises various airport charges such as landing, parking, housing and ground handling, etc., by 345%.
The high court will hear the plea, made by the airlines under the banner of Federation of Indian Airlines (FIA), on July 10, Tuesday.
The petitioners pleaded that the hike would prove to be the death knell for many airlines already reeling under a severe financial crunch.
"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 the economic and financial situation of airlines is bad," the FIA added.
The airlines added that a 345% hike in aeronautical tariff would not merely jeopardise the airport operations but also have an adverse impact on India and its economy.
"It will make the IGI airport the most expensive airport in the world," the FIA said, adding the escalation of tariff will lead to a decline in demand of the IGI airport and result in fall in tourist arrival, consequently impacting the trade and tourism industry.