The operator of Delhi's international airport, primarily owned by GMR Airports, has initiated legal proceedings against the government for permitting commercial flights from a nearby defence airbase.
The case is set to be heard on Monday, according to legal documents.
Delhi airport, one of India's busiest, handled approximately 73.6 million passengers last year but incurred a loss of $21 million due to increased government fees. Comparatively, the nearby airbase had about 1,400 users by Sunday.
Delhi International Airport Limited (DIAL) stated in a lawsuit filed on March 10 that the airport would become "economically and financially unviable" following the government's approval for commercial flights from the Ghaziabad defence airbase.
DIAL informed the Delhi High Court that the government breached aviation regulations, which prohibit the establishment of a new airport within 150 km of an existing one unless there is a demand from passengers.
The Airports Authority of India also holds a stake in DIAL. DIAL is seeking to reverse the government's decision, referencing media reports that Air India Express flights began operating in March from Hindon Airforce Station, located about 30 km from Delhi airport. DIAL is represented by the law firm Trilegal.
(With Reuters inputs)