Delhi Airport operator sues government over defense airbase flights

The operator of Delhi’s Indira Gandhi International Airport, Delhi International Airport Limited (DIAL), has initiated a significant legal battle against the Indian government, filing a lawsuit on March 10, 2025, in the Delhi High Court. DIAL, majority-owned by GMR Airports with a minority stake held by the Airports Authority of India (AAI), contends that the government’s decision to permit commercial flights from a nearby defense airbase, Hindon Airforce Station in Ghaziabad, threatens the financial viability of one of India’s busiest airports. The case, which marks a rare instance of an airport operator challenging governmental policy in court, underscores the tensions between India’s expanding aviation sector and regulatory frameworks designed to manage it.

The Delhi airport, a critical hub in India’s aviation network, handled approximately 73.6 million passengers in 2024, making it one of the country’s most trafficked airports. Despite this impressive footfall, the facility recorded a loss of $21 million, a deficit attributed to escalating government fees. In contrast, Hindon, located just 30 kilometers (19 miles) from the Delhi airport, served around 1,400 passengers on a single day in March 2025, highlighting a stark disparity in operational scale. DIAL argues that the government’s authorization of commercial operations at Hindon, a facility originally intended as a defense aerodrome, undermines the economic foundation of the Delhi airport. The operator asserts that this move could render its business “economically and financially unviable,” a claim rooted in both financial projections and legal principles.

At the heart of DIAL’s lawsuit is the accusation that the government has breached Indian aviation regulations. These rules stipulate that no new airport can operate within an aerial distance of 150 kilometers (90 miles) of an existing one unless there is demonstrable passenger demand justifying the additional facility. Hindon’s proximity—well within this restricted radius—forms the basis of DIAL’s contention that the government’s decision is unlawful. The operator points to the initiation of commercial flights by Air India Express from Hindon in March 2025 as evidence of this violation, arguing that such operations siphon potential revenue from the Delhi airport without a clear justification based on demand.

Historically, Hindon has played a supporting role in the Delhi airport. Since 2017, it has functioned as a temporary extension under the Indian government’s regional connectivity scheme, accommodating flights while the capital’s airport underwent expansion. This arrangement was intended as a stopgap measure, not a permanent competitor. DIAL’s lawsuit suggests that the government’s recent actions represent a departure from this understanding, potentially driven by conflicting interests within the AAI, which is both a stakeholder in DIAL and a regulatory body privy to the operator’s confidential business strategies. This dual role, DIAL claims, exacerbates the financial risks posed by Hindon’s commercial operations. Represented by the Indian law firm Trilegal, DIAL is seeking a judicial reversal of the government’s decision. The outcome of this case, scheduled for a hearing shortly after the filing, could set a precedent for how India balances the growth of its aviation infrastructure with the interests of established operators. As the nation’s air travel demand surges—fueled by a growing middle class and economic expansion—airports have become lucrative ventures for conglomerates like GMR and competitors such as Gautam Adani’s Adani Group. Yet, this lawsuit reveals the complexities of managing that growth within a framework of existing regulations and economic realities, casting a spotlight on the delicate interplay between policy, profit, and public interest in India’s skies.