In this May 2025 edition of our newsletter, we bring you a concise analysis of the rapid growth in India's civil aviation sector, now the world's third-largest domestic market. As the industry evolves to improve connectivity, enhance operational efficiency, and embrace sustainability, we highlight key regulatory changes, major infrastructure approvals, and recent legal precedents that are shaping the future of aviation in India and globally.
We hope this issue offers valuable insights as we continue to track the latest developments and opportunities in this dynamic sector.
A. Key Updates – India
a. IndiGo and BIAL sign MoU to establish MRO Facility at Kempegowda International Airport
May 30, 2025- IndiGo has entered into a Memorandum of Understanding with Bangalore International Airport Ltd. ("BIAL") to develop a state-of-the-art Maintenance, Repair, and Overhaul ("MRO") facility at Kempegowda International Airport, Bengaluru. As part of the agreement, BIAL will allocate approximately 31 acres of land to IndiGo for the construction of the MRO infrastructure. The facility will be equipped to service both narrow-body and wide-body aircraft and will significantly enhance IndiGo's maintenance capabilities and reinforce its operational footprint at Bengaluru Airport.
The collaboration is also expected to contribute to Bengaluru's emergence as a premier aviation hub in the region. Beyond the MRO facility, the MoU sets the stage for broader cooperation between IndiGo and BIAL, including future plans for network expansion, infrastructure development, and joint marketing initiatives.
Source: IndiGo Website
b. Delhi Airport secures spot in top 10 Airports in Asia-Pacific and Middle East Regions
May 28, 2025- Airports Council International Asia-Pacific & Middle East has released the Air Connectivity Ranking 2024. The report highlighted that the Asia-Pacific region recorded a 13 percent increase in overall connectivity compared to 2023, while the Middle East region registered a 28 percent rise, exceeding all post-COVID recovery forecasts. In the category of 'Airports in Air Connectivity' in 2024, Dubai International Airport was ranked first, Shanghai Pudong was ranked second and Incheon International Airport was ranked third. Delhi International Airport was ranked tenth in the category of 'Hub Airports with Connectivity Leadership' in 2024.
Source: Airports Council International Website
c. ICRA projects 10 percent rise in air passenger traffic in April 2025
May 22, 2025- ICRA reported that domestic air passenger traffic in April 2025 was estimated at 145.5 lakh, reflecting a 10.2 percent increase from 132 lakh in April 2024. For the financial year 2025, domestic air passenger traffic was around 1,653.8 lakh, representing year-on-year growth of 7.6 percent and 16.8 percent increase over the pre-COVID level of approximately 1,415.6 lakh in FY2020. For the same period, international passenger traffic for Indian carriers stood at 338.6 lakh, showing a 14.1 percent year-on-year growth and a 49 percent rise over the pre-COVID level of 227.3 lakh.
ICRA Report further recorded that the average Aviation Turbine Fuel price stood at Rs 95,181 per kilolitre in FY2025, which was 8.0 percent lower on a year-on-year basis, but 47.1 percent higher than the pre-COVID level which estimated Rs 64,715 per kilolitre. In April and May 2025, ATF prices were lower by 12.9 percent and 17.2 percent respectively on a year-on-year basis and lower by 6.1 percent and 4.3 percent on a sequential basis. However, compared to pre-COVID levels in April and May 2019, prices remained higher by 37 percent and 28.1 percent respectively.
Source: ICRA Report April 2025
d. GMR Airports takes over cargo operations at Delhi Airport after Celebi Clearance Revoked
22 May 2025- In a significant operational shift at Indira Gandhi International Airport ("IGIA"), GMR Airports Ltd ("GAL"), a subsidiary of GMR Group, has assumed full control of cargo operations following the revocation of security clearance for Turkish firm Celebi Airport Services India. The Bureau of Civil Aviation Security withdrew Celebi's clearance on 15 May due to national security concerns.
Celebi, a key player in India's aviation sector for over 15 years, managed cargo and ground handling at nine major airports and employed over 10,000 personnel. At IGIA alone, it handled approximately 540,000 tonnes of cargo annually. In response to the Bureau of Civil Aviation Security's directive, Delhi International Airport Ltd ("DIAL") terminated its agreement with Celebi and transitioned all cargo operations to GAL. DIAL confirmed the change via social media, assuring stakeholders of seamless business continuity as GMR consolidates its role across its airports in Delhi, Hyderabad, and Goa.
Source: Industry Reports
e. IndiGo expands Wide-Body Fleet with two additional Boeing 787-9 Aircraft under Lease Agreement
May 8, 2025- IndiGo announced that it had signed an agreement with Norse Atlantic Airways for the damp lease of two additional Boeing 787-9 Dreamliner aircraft. These are the fifth and sixth aircraft to be leased under the existing partnership and are expected to begin operations by early 2026 for long-haul routes out of India. Earlier this year, IndiGo had signed similar agreements for one Boeing 787-9 aircraft, followed by three more. One of these aircraft has already commenced operations on IndiGo's Delhi–Bangkok route from March 1, 2025.
Source: IndiGo Website
B. Key International Updates
a. Pratt & Whitney workers approve the new contract
28 May 2025- Union members at aircraft engine manufacturer Pratt & Whitney have approved a new contract offer, officially ending a three-week strike that had disrupted key aerospace production. The International Association of Machinists and Aerospace Workers ("IAM") confirmed the ratification, following a membership vote held at the Toyota Oakdale Theatre in Wallingford, Connecticut.
The strike, which began on May 5th after the rejection of an earlier offer, had impacted the manufacturing of engines for both the F-35 fighter jet and the Airbus A320neo. The approved agreement includes 18.6% total compensation increase over three years; 4% immediate wage hike, and a ratification bonus of USD 5,000 along with enhanced retirement benefits. With the deal now ratified, machinists will resume work under the new terms, stabilizing production and easing strain on the aerospace supply chain.
Source: IAM Local 1746, Pratt & Whitney
b. SriLankan Cargo secures South Asia's first IATA Lithium Battery Certification
May 8, 2025- The cargo division of SriLankan Airlines received the CEIV Lithium Batteries Certification from the International Air Transport Association ("IATA"), becoming the first airline cargo division in South Asia to do so. The certification covers all categories of cargo including lithium and sodium-ion battery shipments. The audit process assessed SriLankan Cargo's quality and safety management systems, personnel, training, documentation, infrastructure, equipment, customer management and operational procedures.
Source: 100 Knots
C. Significant developments
a. Vikram Singh Mehta Appointed as Chairman of IndiGo
May 28, 2025- Vikram Singh Mehta was appointed as Chairman of the Board of InterGlobe Aviation Limited. He has succeeded Dr. Venkatarami Sumantran, who stepped down after serving as Chairman for five years. Vikram Singh Mehta has been previously recognised as "Businessman of the Year" and "Best Independent Director" by Asia House in 2010.
Source: IndiGo Website
b. IndiGo and Adani Airports announce launch of commercial operations from Navi Mumbai International Airport
May 28, 2025- IndiGo and Adani Airport Holdings Ltd. announced the commencement of commercial flight operations from Navi Mumbai International Airport. IndiGo will begin with 18 daily departures, equating to 36 Air Traffic Movements, to over 15 cities from the first day of operations. By November 2025, this will increase to 79 daily departures, including 14 international departures.
Source: IndiGo Website
D. Key Judicial Precedents
a. Delhi High Court dismisses Maran and KAL Airways' appeals against SpiceJet
May 26, 2025- The Delhi High Court dismissed appeals filed by Kalanithi Maran and KAL Airways against SpiceJet and its promoter Ajay Singh, holding that the appellants had taken a "calculated gamble" by delaying both the filing and re-filing of their challenge to a 2023 ruling. The Court found no justification for the 55-day delay in filing and 226-day delay in re-filing, calling their conduct a case of deliberate concealment. The dispute dates back to 2015 commercial disagreement over control and operation of SpiceJet, in which an arbitral tribunal had directed SpiceJet to refund Rs 270 crore to Maran. Both the parties challenged certain portions of the award. These petitions were dismissed by the single judge in 2023. Pursuant to the dismissal, SpiceJet challenged the award, leading the High Court to temporarily putting the refund on hold.
However, Maran and KAL Airways first challenged the May 2024 remand order before the Supreme Court. Only after the Supreme Court dismissed their petitions on July 26, 2024, Maran and Kal Airways refiled their defective High Court appeal. The High Court noted this sequence indicated a strategic and deliberate delay, not mere negligence. In view of the events that took place, court ruled that there is a lack of bona fides and therefore refused to condone the delay and dismissed the appeals without going into their merits.
Source: Bar and Bench
b. Celebi Aviation challenges revocation of Security Clearance in Delhi Court
16 May 2025 – Turkish ground handling company Celebi Aviation has filed a legal petition in a Delhi court challenging the Indian government's decision to revoke its security clearance. The clearance is mandatory for companies offering critical airport services in India, such as passenger and baggage handling. In its filing, Celebi's Indian unit has termed the government's reasoning related to national security concern as "vague" and has sought judicial intervention.
The revocation of security clearance has affected Celebi's operations at major Indian airports including at Delhi, Mumbai, Bengaluru and Hyderabad. The decision comes amid heightened geopolitical tensions following reports of Turkish drones being used by Pakistan against India and Turkey's continued diplomatic support to Pakistan after India's Operation Sindoor.
Source: Reuters
c. Air Belgium declared Bankrupt resulting in unpaid refunds of passengers
15 May 2025- Air Belgium, a European international airline once operating routes including from Newark Liberty International Airport, was officially declared bankrupt by the Walloon Brabant court on April 30, 2025. The airline had been struggling financially since the onset of the COVID-19 pandemic and had announced the suspension of all remaining passenger operations in September 2023. Following the suspension, it began scaling down its cargo fleet and workforce.
According to the European Travel Agents' and Tour Operators' Association ("ECTAA"), the bankruptcy will result in approximately EUR 8 million in unpaid passenger refund claims, including over EUR 5 million involving bookings made through travel agents and tour operators. While the airline's cargo business was acquired by French logistics company CMA CGM, which will be preserving 124 jobs, the remainder of Air Belgium's businesses will be liquidated, with little to no funds expected to be available for refunding passengers. ECTAA has renewed calls for mandatory airline insolvency protection in Europe, urging the EU to adopt a model similar to Denmark's air ticket guarantee fund to protect consumers and intermediaries in the event of future airline closures.
Source: ECTAA Press Release
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