The Bombay High court made the observation while responding petition by Federation of Indian Airlines (FIA) against MIAL's move to charge 13% on 'selling price' of food items by airlines against the current practice to charge it on 'cost price.
The Bombay High Court has said that Mumbai International Airport Ltd (MIAL) cannot demand a share in the income of the airline operators under the pretext of recovering the airport levy.
The court made the observation while responding to a writ petition filed by Federation of Indian Airlines (FIA) against MIAL's move to charge 13% on 'selling price' of food items by airlines against the current practice to charge it on 'cost price'. FIA is an association of airlines including GoAir, IndiGo and SpiceJet.
MIAL, on the other hand, has maintained that the levies sought by it are within the power granted to it under the law. Airline officials refused to comment on the observations made by the court. The court on Friday observed that the airlines operate under licence from aviation regulator Directorate General of Civil Aviation (DGCA) and may or may not be making a profit. MIAL, which has been tasked with the modernisation of city's Chhatrapati Shivaji International Airport (CSIA), cannot expect itself to be compensated or reimbursed for the entire or substantial expenditure amount spent by it.
"It is not as if the passengers or airlines are making demand from them and continuously. The passengers and the airline operators hitherto and even now will be expecting all basic amenities and facilities. If second respondent (MIAL) desired to extend comfort and luxuries and by utilising state-of-the-art technology in upgrading the airport it cannot expect, much less, demand a share in the income or profits generated by the airline companies," the court said.
Since June this year the airport operator wanted the airlines to pay the same percentage on revenue earned from the 'selling price' of the items, in order to bring uniformity with flight kitchen operators. The airlines have objected to the move saying MIAL's demand was against the prevailing laws.
The dual bench of Justices Shalini Joshi and S Dharmadhikari refused to pass any stay order or directions and said if any payments are made, it would be open for the petitioners to adopt such proceedings as are permissible in the law for recovery of the same. Meanwhile, MIAL has plans to start its own flight kitchen services. In June, it issued a public tender seeking Request for Qualification (RFQ) for creating and operating an in-flight catering facility within the airport premises.
According to the officials, at present in-flight catering services at CSIA are being offered by Skygourmet Catering Pvt Ltd, TajSATS Air Catering Ltd, Narangs International Hotels Pvt Ltd, Chefair Flight Catering (Hotel Corporation of India) and Oberoi Flights Services, a unit of EIH. The global in-flight catering market is estimated to be over $17 billion, which is expected to increase to $18 billion by 2020. India, which is poised to become third-largest aviation market by 2020, offers a sizeable growth opportunity in the segment.
CSIA handled over 41.6 million passengers during 2015-16, though the management had anticipated 40 million passenger movements by 2018-19.
a_shahakar@dnaindia.net
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