Mumbai Airport asks Air India to vacate land, including four staff colonies

The colonies house 1,600 families; notice served on March 11, barely a month after airline's handover to Tata Sons

The Adani-group owned Mumbai International Airport Limited (MIAL) has issued a notice to Air India asking it to surrender land that is not core to its operations. This includes the airline’s four staff colonies which house 1,600 families.

The notice was served on March 11, barely a month after the airline’s handover to Tata Sons. It asks Air India to review its utilisation of airport land, enter into licence agreements on an arms’ length basis with its former ground handling and engineering subsidiaries and surrender balance land and space to MIAL.

MIAL has given the airline 45 days notice to comply with these actions. It said in case of non compliance it will have no option but restrain the airline and its employees from entering upon and utilizing the concerned airport land and premises.

Mumbai airport’s move has attracted the attention of political parties ahead of municipal elections this year. On Sunday, Shiv Sena MP Gajanan Kirtikar pledged party support to Air India employees who are fighting possible eviction from their homes. Kirtikar said the party was prepared to protest against the Adani group on the issue. NCP’s former legislator Vidya Chavan has sought intervention of Maharashtra government on the issue.

Air India and Adani group did not respond to email query on the topic. In the past however Air India has questioned MIAL’s right to issue vacation notices, it is learnt.

According to MIAL, Air India is utilizing around 750,000 square metres of airport land in Kalina and Sahar areas of Mumbai. This includes offices, hangars, cargo warehouses, ramp operation office, housing colonies, sports club and also developed and vacant land that is used for parking of ground services equipment.

 “The issue here is Air India has been paying a pittance for utilizing the airport land while MIAL would like to charge commercial rates. It could not do so far because Air India was a government entity,” said a person in the know. He added that several years ago there was a plan to construct towers for Air India offices and staff quarters in the Kalina area and surrender balance land to MIAL but the proposal fell through.

The Airport Authority of India had licensed parcels of land to Air India and erstwhile Indian Airlines. However, over time these licences expired. Arrangements to finalise agreements with Air India after expiry of licences did not materialize and the airline continued to pay highly concessional rates till its revision in 2018. MIAL took over operations of the airport in 2006. Similarly, the notice says that the airline continues to use space in airport terminals at highly concessional rates and no licence agreement was executed.

In its notice MIAL pointed out that from time to time it initiated discussions with Air India and the civil aviation ministry for surrender of airport land. “Whilst Air India offered to surrender several parcels of the airport land and spaces (including the land on which the housing colonies are located) the discussions remained inconclusive,” it said.