The Delhi and Mumbai International Airports Limited (DIAL) and Mumbai International Airport Limited (MIAL) have been issued notices by the Delhi High Court in response to a plea filed by the Airports Authority of India (AAI). The AAI is seeking a review of a 2006 agreement that governs revenue sharing between the airport operators and the authority.
Source:- bbc news
The AAI, in its plea, contends that the 2006 agreement is outdated and no longer aligns with the current economic landscape. The authority argues that the revenue sharing model, which was established at a time when the aviation sector was significantly less developed, is not equitable.
Source:- news 18
The AAI is seeking a revision of the revenue-sharing terms to ensure a more favorable distribution of revenue. The authority believes that it is entitled to a larger share of the revenue generated by the two airports, given its role in developing and maintaining airport infrastructure.
The Delhi High Court has issued notices to DIAL and MIAL, seeking their response to the AAI’s plea. The court has scheduled the next hearing on the matter for a later date.
The outcome of this legal battle could have significant implications for the aviation sector in India. A revised revenue-sharing agreement could impact the financial viability of airport operators and, consequently, the development of airport infrastructure and the overall growth of the aviation industry.
Both DIAL and MIAL are expected to present their arguments before the court, highlighting the investments made in developing and upgrading the airports. They may also argue that the existing revenue-sharing agreement is fair and equitable, and that any changes could adversely impact their operations and future development plans.
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