In a joint plea, the Federation of Indian Airlines (FIA), an airlines' association, alleged the Airport Economic Regulatory Authority's April 24 order allowing GMR-promoted DIAL to increase the tariff by 345 percent was unlawful as they have done it without following the basic norms of the regulated sectors like independent audit prudence check.
The FIA said the hike would hamper the financial position of the airlines. "Some airlines may not be able to survive and would be under serious financial stress," it said.
"The decision will make it very difficult for airlines to recover such high tariff particularly in the present-day scenario when economic and financial situation of airlines is bad," the FIA added.
The petitioner association further submitted that a 345 percent hike in aeronautical tariff will not be limited to the airport operations and instead will have an adverse impact on India and its economy.
"It will make IGI airport as the most expensive airport in the world," the FIA said adding that the escalation of tariff will lead to decline in demand of the IGI airport and it will result in fall in tourist arrival, consequently impacting the trade and tourism industry.
This step would damage local and international airlines connectivity, the FIA added. (More)
