Why Delhi airport and IndiGo are locked in a bitter battle

Delhi International Airport Limited (DIAL) and low-cost airline IndiGo are engaged in a bitter battle over a commercial issues. Catch why it is happening and what has been done so far to resolve the same:

1. The numbers : Terminal 1 of the airport was used for all domestic flights of low-cost carriers — IndiGo, SpiceJet and GoAir...
While Terminal 1 has a capacity to handle 2 crore passengers annually. It handled 2.4 crore in financial year 2017 and is expected to see 2.6 crore flyers in financial year 2018.


2. The solution

• DIAL wants to move a third of the traffic to T2
• Get space at T1 to begin expansion work and double its capacity by 2020-21

3. What DIAL offered

• In January, DIAL gives SpiceJet and GoAir the option to shift fully to T2...
• ...or, shift a third of flights of IndiGo, SpiceJet and GoAir to T2 from October-end

4. The hurdles

• Airlines fail to reach an agreement as IndiGo says no to partial shifting of domestic operations...
• ...even as GoAir moves fully to T2 from October 29
• SpiceJet says will go for partial move only if IndiGo does the same
• DIAL rules that IndiGo and SpiceJet flights to and from Mumbai, Kolkata and Bengaluru will operate from T2 from January 2018
• IndiGo moves high court against the order

INDIGO VS DIAL: FIGHT OVER FLIGHT PLAN


What DIAL is doing

• In talks with LCCs since January, but no consensus reached
• Aviation ministry says DIAL's word to be final; DIAL decides flights to and from Mumbai, Bengaluru and Kolkata of three LCCs to operate from T2 from January 2018

What IndiGo says

• Opposes splitting of domestic flights between T1 and T2
• Can go to T2 fully if DIAL increases terminal's capacity to suit its requirement
• Points out that only IndiGo and SpiceJet operate international flights from T3 and domestic from T1; Others, such as Air India and Jet, operate entirely from T3
• Splitting domestic flights between T1 and T2 will mean IndiGo and SpiceJet will have to operate from three different terminals

DIAL says IndiGo and SpiceJet must

• Shift some flights to T2; enough time already given to both airlines to shift in an efficient manner
• CEO I P Rao says shifting means splitting operations, 'but everyone has to share the pain'

IndiGo explains why not

• Operating from T1, T2 & T3 will result in confusion among customers
• Peak season traffic commences from October, a large number of advance bookings already made

DIAL says it gave the three LCCs option of deciding among themselves the modalities of shifting
Shift is temporary as LCCs will go back to expanded T1 in 2020-21. Then T2 will be demolished to make way for T4, taking IGIA to its peak traffic handling potential


IndiGo retorts DIAL move 'arbitrary, discriminatory, illegal and malafide'

• Could 'destroy IndiGo's business (and) the reputation it has built over last 11 years as the most efficient and most liked airline in India'
• On Nov 15, Delhi high court wants to know from DIAL the basis for its decision to partially shift operations of the three domestic airlines