Federation of Indian Airlines moves SC against TDSAT order on airport charges

The Federation of Indian Airlines (FIA) has moved the Supreme Court challenging an order of the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) over the principles for determination of aeronautical tariff in respect of airport operators.

The FIA has challenged the July 1 order of the TDSAT contending that the tribunal “gravely erred” in going far beyond the limited scope of remand directed by this court.

The tribunal has reopened and re-adjudicated issues relating to the computation of Hypothetical Regulatory Asset Base (HRAB), which had already attained finality by apex court’s verdict dated July 11, 2022, it submitted.

The FIA has filed an intervention application in pending matters where the two operators of Delhi and Mumbai airports, the DIAL and MIAL, have challenged the tribunal’s order.

The FIA’s plea will be taken up for hearing on December 16 by a Bench of Justice Aravind Kumar and Justice NV Anjaria.

“The impugned judgment not only suffers from legal error but also has grave financial consequences. By inflating HRAB to Rs 4,848 crores, it grants DIAL an undue windfall, enabling perpetual recovery without commensurate investment.

“This burden will ultimately fall on airlines and passengers through higher airport charges, including landing, parking, and user development fees. The cascading effect is detrimental to consumer interest, contrary to cost-recovery principles, and inimical to the growth of the civil aviation sector,” the plea said.