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Journal of Air Law and Commerce

Moses George

Abstract

DRIVATIZATION OF AIRPORTS owned by the Airport Authority of India (AAI) was intended to bring in private capital and thereby improve airport standards and reduce high airport costs in India. This Article will analyze the post-privatization economic scenario, specifically with regards to a new category of airport levy, called the development fee (DF), in light of the Supreme Court of India's decision on the issue. This article discusses various legal and regulatory issues connected with this levy, especially as they relate to international and domestic guidelines regarding airport charges, including International Civil Aviation Organization (ICAO) documents, the Chicago Convention, the Constitution of India, and other relevant Indian aviation laws. This article proposes that the new tax, the DF, is not in line with international guidelines. Also, if the airports are considered to be private airports, the tax may be an ultra vires tax.

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