The operator of New Delhi’s international airport, primarily owned by GMR Airports, has filed a lawsuit against the Indian government for permitting commercial flights from a nearby defence airbase, citing financial risks, according to legal documents.
Delhi’s airport, one of India’s busiest, handled around 73.6 million passengers last year but incurred a $21 million loss due to increased government fees. With rising air travel demand, airports have become a profitable sector for companies like GMR and billionaire Gautam Adani, who also operates in this space.
In its March 10 lawsuit, DIAL warned that the airport would become “economically and financially unviable” after the government allowed commercial operations from the airbase.
Reuters, the first to report on the lawsuit, revealed that DIAL informed the Delhi High Court that the government had violated aviation regulations prohibiting new airports within 150 km (90 miles) of an existing one unless justified by passenger demand.
India’s Solicitor General, Tushar Mehta, told the court on Monday that Hindon Airport currently operates over 120 flights weekly. The judge has requested the government to submit a written response to DIAL’s claims.
India’s civil aviation ministry has not responded to email inquiries regarding the matter.
Following the lawsuit’s disclosure, GMR Airports’ shares dropped by up to 0.7%.
The state-run Airports Authority of India (AAI), which manages the Hindon facility in Ghaziabad, also holds a stake in DIAL and has three board seats.
DIAL has accused AAI of a conflict of interest, arguing that the authority has access to confidential business strategies and operational details.
The company has urged the court to overturn the government’s decision, referencing media reports that Air India Express began operating flights from Hindon Airforce Station in March. The station, located about 30 km (19 miles) from Delhi airport, has been used as a temporary extension of the capital’s airport under the government’s regional connectivity scheme since 2017.
DIAL is represented in the case by Indian law firm Trilegal.
