Delhi International Airport Limited (DIAL), controlled by GMR Airports, has filed a lawsuit against the Indian government for permitting commercial flights from Hindon Airport, a defence aerodrome near the capital. The case, set for hearing on Monday, argues that this move violates aviation regulations prohibiting a new airport within 150 km of an existing one unless justified by passenger demand. DIAL fears this decision will negatively impact its financial sustainability.
Despite handling 73.6 million passengers last year, Delhi Airport reported a USD 21 million loss due to high government fees. In contrast, Hindon Airport saw only 1,400 passengers on Sunday, according to its official X account. DIAL contends that allowing commercial flights from Hindon undermines its operations and threatens its economic viability in an already competitive market.
Adding to the complexity, the Airports Authority of India (AAI), which operates Hindon, holds a stake in DIAL and has three board seats. DIAL claims AAI’s involvement creates a conflict of interest, as it has access to sensitive business strategies and operational details. This raises concerns about fairness and regulatory compliance in the aviation sector.
DIAL is urging the Delhi High Court to overturn the government’s decision, citing media reports that Air India Express began flights from Hindon in March. The lawsuit marks a significant legal battle in India’s aviation industry, with DIAL represented by the law firm Trilegal. The civil aviation ministry has not yet responded to the allegations.