Delhi airport operator sues government over competition from defence airbase

In a legal battle unfolding in India, the operator of New Delhi's international airport, majority owned by GMR Airports, has initiated a lawsuit against the government over a contentious aviation regulation. The issue arose on March 10, 2025, when the government announced the permission for commercial flights to operate from the nearby Hindon Airport, a defence aerodrome that had until then been restricted to military functions. This development has alarmed DIAL, which manages the Delhi International Airport, as they argue that the introduction of these flights poses significant financial risks. The Delhi Airport is one of the busiest in India, with approximately 73.6 million passengers processed in the past year, yet it suffered a financial loss amounting to $21 million primarily due to increased government fees. The lawsuit argues that the government's decision constitutes a violation of aviation regulations that typically prohibit the establishment of new airports within a 150 km radius of existing ones unless justified by a sufficient passenger demand. DIAL contends that the introduction of additional commercial flights from the defence aerodrome threatens to destabilize their operational viability. In court proceedings, the Solicitor General of India, Tushar Mehta, confirmed that the Hindon Airport is currently operating over 120 flights weekly. This raised further concerns regarding the potential oversaturation of the aviation market in the region, which could lead to unhealthy competition and economic unrest for established airports, notably the Delhi International Airport being managed by DIAL. As the legal proceedings progress, the Delhi High Court has requested written responses from the government regarding DIAL's claims. The outcome of this lawsuit could have significant implications not just for DIAL but for the broader aviation landscape in India, where air travel demand is surging. Stakeholders are closely monitoring the situation, as decisions made by the court could either reinforce existing regulations protecting established airports or pave the way for more competitive dynamics in the aviation sector. Though the market is growing rapidly due to rising demand among Indian consumers, balancing competition and ensuring the financial health of existing operators remains a critical challenge for regulators and stakeholders alike.