Legal Turbulence: Airlines Challenge Inflated Airport Tariffs in Supreme Court

The Federation of Indian Airlines (FIA) has challenged a telecom tribunal order in the Supreme Court, accusing it of overstepping its bounds and inflating airport tariffs unfairly. The dispute involves significant financial implications for airlines and consumers, potentially increasing user fees at Delhi and Mumbai airports.

The Federation of Indian Airlines (FIA) has escalated a legal battle to the Supreme Court, questioning a telecom tribunal's decision on aeronautical tariffs at major airports. The FIA argues that the tribunal misjudged its remand scope, revisiting already settled issues under the apex court's prior verdict.

Main contention lies with the tribunal's recalculation of the Hypothetical Regulatory Asset Base (HRAB), inflating it from Rs 966 crores to Rs 4,848 crores. This rise grants undue economic advantage to airport operators DIAL and MIAL, potentially burdening consumers with heightened airport charges.

The plea stresses the need for judicial intervention to restore previously affirmed determinations on tariffs and to prevent economically detrimental outcomes that undermine the principles of cost recovery and consumer interest in India's civil aviation sector.

(With inputs from agencies.)