FIA Moves Supreme Court Against TDSAT Order on Airport Charges
Airlines say tribunal exceeded mandate in revisiting tariff principles
Case could reshape future of airport fee regulation in India
By Our Legal Reporter
New Delhi: December 15, 2025:
The Federation of Indian Airlines (FIA), representing major carriers in India, has approached the Supreme Court challenging a recent order of the Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT). The dispute centres on the principles for determining aeronautical tariffs charged by airport operators, particularly at Delhi International Airport Limited (DIAL) and Mumbai International Airport Limited (MIAL).
The case is significant because airport charges directly affect airline operating costs, ticket prices, and passenger affordability.
Background of the Dispute
- In July 2025, TDSAT passed an order revisiting the methodology for calculating airport tariffs.
- FIA claims the tribunal “gravely erred” by reopening issues that had already attained finality in a Supreme Court judgment dated July 11, 2022.
- The tribunal allegedly went beyond the limited scope of remand directed by the apex court.
- The dispute involves the computation of the Hypothetical Regulatory Asset Base (HRAB), a key factor in determining aeronautical charges.
FIA’s Arguments
- Exceeding jurisdiction: FIA argues that TDSAT exceeded its mandate by re-adjudicating settled issues.
- Impact on airlines: Higher airport charges increase costs for airlines, which may be passed on to passengers.
- Legal consistency: FIA stresses that once the Supreme Court has ruled, tribunals cannot reopen the matter.
Court Proceedings
- FIA’s plea is scheduled to be heard by a Bench of Justice Aravind Kumar and Justice NV Anjaria on December 16, 2025.
- The Supreme Court will examine whether TDSAT acted within its jurisdiction.
- The case also involves intervention applications by DIAL and MIAL, who support the tribunal’s order.
Impact on Aviation Sector
1. On Airlines
- Cost burden: Higher airport tariffs increase operational expenses.
- Ticket prices: Airlines may pass costs to passengers, raising fares.
- Profit margins: Low-cost carriers could be hit hardest.
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2. On Passengers
- Higher fares: Increased airport charges may make air travel less affordable.
- Service quality: Airlines may cut costs elsewhere, affecting passenger experience.
3. On Airport Operators
- Revenue boost: Higher tariffs strengthen financial position of private airport operators.
- Investment capacity: More funds available for infrastructure upgrades.
Expert Opinions
- Aviation analysts say the case will set a precedent for tariff regulation.
- Legal experts note that the Supreme Court’s ruling will clarify the scope of tribunal powers.
- Industry leaders warn that excessive charges could slow growth in India’s aviation sector.
Broader Context: Airport Charges in India
- Airport charges include landing fees, parking fees, and passenger service fees.
- These charges are regulated by the Airport Economic Regulatory Authority (AERA).
- Disputes often arise between airlines and airport operators over tariff hikes.
- India’s aviation sector is one of the fastest-growing globally, making tariff regulation critical.
Also Read: ITAT Mumbai Rules: Excess Repayment by Karta to HUF Is Capital Receipt, Not Taxable
Challenges Ahead
- Balancing interests: Courts must balance airline affordability with airport operator profitability.
- Regulatory clarity: The case highlights the need for clearer guidelines on tariff determination.
- Global competitiveness: Excessive charges could hurt India’s position as a competitive aviation hub.
Conclusion
The Supreme Court’s decision in the FIA vs. TDSAT case will have far-reaching consequences for India’s aviation industry. By challenging the tribunal’s order, FIA seeks to protect airlines and passengers from what it sees as unjustified tariff hikes.
The ruling will clarify the limits of tribunal jurisdiction, shape future tariff regulation, and determine how costs are shared between airlines, passengers, and airport operators.
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