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Supreme Court To Hear Challenge To TDSAT Ruling That Could Sharply Raise Delhi, Mumbai Airport User Fees

The case centers on a tribunal’s recalculation of the regulatory asset base for 2009–14 that implies over ₹50,000 crore in under-recovery to be recouped through higher user charges.

Overview

  • Justices Aravind Kumar and Nilay Vipinchandra Anjaria are scheduled to hear the appeals on Wednesday, with AERA, domestic carriers, and airlines such as Lufthansa, Air France, and Gulf Air seeking relief.
  • Reporting based on the TDSAT formula models UDF jumps of up to about 22 times, with Delhi’s domestic fee cited rising from ₹129 to ₹1,261 and international from ₹650 to ₹6,356, while Mumbai estimates vary across reports.
  • The July TDSAT order set aside AERA’s approach for 2009–14, directing a recalculation that includes non‑aeronautical revenue in the hypothetical regulatory asset base using a back‑solved target‑revenue method.
  • The tribunal relied on a May 2011 Ministry of Civil Aviation letter it treated as a direction to AERA, a point now central to the regulator’s and airlines’ Supreme Court challenge.
  • Implementation details remain uncertain, with the tribunal indicating a possible 60% recovery from airlines and 40% from passengers, and sources suggesting any recovery could be phased rather than immediate.