The Federation of Indian Airlines (FIA) has approached the Supreme Court challenging an order passed by the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) concerning the principles used to determine aeronautical tariffs for airport operators. The move reflects growing concerns within the airline industry over regulatory decisions that may significantly impact operational costs.
The FIA has specifically challenged the tribunal’s July 1 order, arguing that TDSAT exceeded its authority by going far beyond the limited scope of remand earlier directed by the Supreme Court. According to the airlines’ body, the tribunal revisited matters that had already been conclusively settled by the apex court.
In its plea, FIA contended that TDSAT wrongly reopened and re-adjudicated issues related to the computation of the Hypothetical Regulatory Asset Base (HRAB). The federation pointed out that these issues had already attained finality through a Supreme Court judgment dated July 11, 2022, and should not have been reconsidered.
The airlines’ association has filed an intervention application in ongoing cases where Delhi International Airport Ltd (DIAL) and Mumbai International Airport Ltd (MIAL) have independently challenged the same TDSAT order. FIA’s intervention highlights the broader industry impact beyond just airport operators.
The matter is scheduled to be heard on December 16 by a Bench comprising Justice Aravind Kumar and Justice N.V. Anjaria. The federation has urged the court to examine the financial and legal implications of the tribunal’s decision in detail.
FIA has warned that the impugned judgment could have serious financial consequences. By inflating HRAB to INR 4,848 crore, it allegedly grants DIAL an undue financial advantage, allowing recovery without proportionate investment. The federation argued that this burden will eventually be passed on to airlines and passengers through higher airport charges such as landing, parking, and user development fees, adversely affecting the aviation ecosystem.
