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Delhi airport: High Court upholds order on IndiGo to move part of operations to T2

Delhi airport operator GMR and InterGlobe-promoted IndiGo have been at loggerheads for nearly a year now over the former’s proposal to move part of the airline’s operations out of the existing terminal.

By: ENS Economic Bureau | Mumbai | Updated: February 14, 2018 4:02 am
Delhi High Court upholds order on IndiGo to move part of operations to T2 Three budget airlines — IndiGo, SpiceJet and GoAir — were asked to vacate the terminal space partially for expansion and upgrading of the airport.

IndiGo’s domestic passengers flying out of Delhi will now need to check whether they need to reach Terminal 1 or Terminal 2, depending on their destination. The Delhi High Court’s division bench on Tuesday upheld the order of the single-judge bench directing budget airline IndiGo to move part of its existing operations from Terminal 1 of Delhi International Airport (DIAL) to Terminal 2 and to approach DIAL within a week’s time with its decision on the sectors it decides to operate from the assigned terminal.

Delhi airport operator GMR and InterGlobe-promoted IndiGo have been at loggerheads for nearly a year now over the former’s proposal to move part of the airline’s operations out of the existing terminal.

Three budget airlines — IndiGo, SpiceJet and GoAir — were asked to vacate the terminal space partially for expansion and upgrading of the airport.

Terminal 1 has already breached its capacity of 20 million and is handling 21 million passengers per year. According to its Master Plan, 2016, in its first phase, DIAL targets upgrade of T1 to handle at least 40 million passengers per annum by 2021. Airport capacity constraint is one of the biggest challenges to the growth of Indian aviation. India is one of the fastest growing aviation markets in the world, but growth in airport capacity is not keeping pace with passenger demand. This shift to Terminal 2 by the three airlines will free up at least 30 per cent space for DIAL to initiate expansion work.

IndiGo, after seeking several extensions from GMR and delaying the move, filed an appeal with the single-judge bench of the Delhi High Court in November 2017, calling GMR’s decision “arbitrary and discriminatory”. The single-judge bench directed the airline to move its flights to Terminal 2. IndiGo then appealed to a dual bench in January 2018, which upheld this decision on Tuesday. The Wadia Group-promoted GoAir already operates from Terminal 2 but Ajay Singh-promoted SpiceJet refused to join in, as it wants competitor IndiGo to shift flights with it. IndiGo wanted the entire Terminal 1 for its combined operations, international and domestic, which was declined by the operator.

IndiGo’s stand is that operating out of three terminals is like operating out of three different airports. “Why in a single city should we be operating as if we are flying out of three different airports?” an official with IndiGo said. The court has also given IndiGo a week’s time to decide upon the sectors it will move from Terminal 1 to Terminal 2. FE

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