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Delhi airport invokes force majeure over revenue sharing with AAI DIAL has also moved court to recover the money it paid to AAI since April
Delhi International Airport (DIAL) has invoked the force majeure clause to suspend the revenue-share agreement with state-owned Airports Authority of India (AAI) as the Covid-19 pandemic continues to impact traffic flow and revenue. DIAL operates the Indira Gandhi International Airport – India’s largest in terms of passenger footfall. According to the agreement signed between AAI and DIAL in 2006 – as part of the privatisation process of Delhi Airport – DIAL paid 45.99 per cent of its annual revenue as concession fee to AAI. DIAL deposits the money on a quarterly
basis in an escrow account, which AAI then transfers to its own account. DIAL has also moved Delhi High Court (HC) to recover Rs 399.20 crore it has made to AAI since April as part of the revenue-share agreement. Air transport was inoperative from March 24 for two months. The government had imposed a nationwide lockdown to contain the spread of the novel coronavirus . A spokesperson for DIAL did not respond to queries till the time of going to press. The HC during a hearing of the case on September 9 had asked AAI to submit a note declaring the treatment of Rs 399.2 crore deposited by DIAL in the escrow account. “A resolution to invoke the force majeure clause was passed by the DIAL board in November. Accordingly we had approached AAI for a cease on revenue share till traffic was back to normal levels,” said a person privy to the development…Read More