Aviation Newsletter | August 2025

In this June - August 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) DGCA approves IndiGo's 6-month extension of wet lease agreement with Turkish Airlines

August 29, 2025- The Directorate General of Civil Aviation ("DGCA") has approved IndiGo's request to extend its wet lease agreement with Turkish Airlines by six months, up to February 28, 2026. The extension is subject to compliance with regulatory conditions prescribed by the aviation authority. The previous extension granted by DGCA was set to expire on August 31, 2025. This latest approval ensures continuity of operations under the existing arrangement, which involves the lease of aircraft and crew from Turkish Airlines to IndiGo.

In May 2025, DGCA had granted what it termed a final three-month extension of the same wet lease agreement, recognizing operational needs arising from international scheduling commitments and geopolitical constraints. DGCA's latest decision enables continued international connectivity on affected routes and allows IndiGo additional time to make long-term operational adjustments in compliance with applicable aviation regulations.

DLL Analysis: This extension serves two purposes, first it provides IndiGo Airlines with time to make alternative arrangements, as the abrupt discontinuation of the flight would have caused additional operational losses at a time when the aviation industry is already facing financial stress.

Second, it supports the broader context in which the judiciary has upheld the government's decision to restrict Turkey-based firms from continuing their operations in India due to national security concerns.

Source: Reuters

b) ICRA report projected a loss of Rs. 95-105 billion in FY2026

August 29, 2025- ICRA has revised its financial outlook for the Indian aviation sector, projecting net losses of Rs. 95-105 billion in FY2026, up from Rs. 55 billion in FY2025. The downgrade follows a reduction in expected domestic passenger traffic growth to 4-6%, amid rising aircraft deliveries, cross-border disruptions and weak business sentiment due to global trade headwinds. Fuel prices and a 3% rupee depreciation continue to impact cost structures, while interest coverage ratios are projected to decline to 1.3-1.5x. The industry fleet reached 855 aircraft by March 2025, with over 1,600 new aircraft pending delivery over the next decade.

DLL Analysis: ICRA's report suggests increasing financial stress across major carriers, raising potential concerns under DGCA financial oversight frameworks. With weakening debt metrics and growing foreign currency exposure, airlines may face pressure to reassess leasing structures, funding plans and compliance with disclosure norms. Regulatory scrutiny may intensify if the projected losses continue to impact creditworthiness and operational viability.

Source: ICRA Press Release

c) DGCA releases traffic data for domestic airlines

August 28, 2025- The Directorate General of Civil Aviation ("DGCA") has published its monthly review of passenger traffic data submitted by scheduled domestic airlines for the month of July 2025. Between January and July 2025, Indian carriers transported 977.79 lakh passengers reflecting an annual growth of 5.90% percent compared to 923.35 lakhs passengers in the same period last year. However, the monthly growth gradually decreased by -2.94%.

The report recorded overall cancellations for the month of July 2025 at 0.81%. According to airline-wise cancellation data, FlyBig had the highest cancellation rate at 47.34%, followed by Alliance Air, SpiceJet and IndiaOne Air, with Akasa Air reporting the lowest cancellation rate. Further, the report also highlighted the market share of airlines, with IndiGo leading at 65.2%, followed by the Air India Group at 26.2%. The report additionally included On-Time Performance ("OTP") statistics for scheduled domestic airlines across six metro airports. IndiGo topped the OTP rankings, followed by Akasa Air, Air India Group, SpiceJet and Alliance Air

DLL Analysis: The decline in monthly passenger growth by 2.94% signals early signs of market stagnation, which is concerning for an industry still recovering from previous financial crisis. High cancellation rates further undermine passenger confidence and disrupt service reliability. If this trend persists, it may slow investor interest and delay critical infrastructure or fleet expansion plans, ultimately weakening the industry's recovery trajectory.

Source: DGCA Website

d) Mahindra Aerostructures awarded Airbus H125 fuselage manufacturing contract

August 28, 2025- Mahindra Aerostructures Private Limited, a part of the Mahindra Group, has secured a contract from Airbus Helicopters to manufacture and assemble the main fuselage of the H125 light single-engine helicopter. The contract follows an earlier award for the H130 helicopter fuselage and marks a significant step forward in Airbus' ongoing localisation strategy under the 'Make in India' initiative.

Under the agreement, Mahindra will manufacture the H125 main fuselage at its Bengaluru facility, which is being expanded to support the programme. Industrialisation will begin immediately, with first deliveries targeted for 2027. The contract strengthens Airbus' long-standing partnership with Mahindra Aerostructures and reinforces India's role as a key player in the global aerospace supply chain.

DLL Analysis: The latest contract strengthens Airbus' long-term partnership with Mahindra and strengthens India's role in the global aerospace supply chain under the 'Make in India' initiative. It also reflects the growing strategic importance of Indian private sector manufacturers in defence and aerospace production.

Source: Mahindra Group Press Release

e) Kempegowda International Airport secures Level 2 Accessibility Accreditation from ACI

August 28, 2025- Kempegowda International Airport, Bengaluru ("BLR Airport") has become the first Indian airport to receive Level 2 Accreditation under the Airports Council International's ("ACI") Accessibility Enhancement Accreditation programme. This global recognition highlights BLR Airport's progress in embedding accessibility into airport strategy, infrastructure and service delivery.

The accreditation, which assesses continuous improvements across facilities, services and governance for Persons with Disabilities and Persons with Reduced Mobility, acknowledges BLR Airport's implementation of inclusive design standards, stakeholder coordination and staff training initiatives. Measures such as the Sunflower Lanyard scheme and a dedicated sensory room for neurodivergent travellers support BLR's broader accessibility framework.

DLL Analysis: The accreditation reflects a growing global trend of integrating accessibility into core aviation governance and marks a significant compliance and reputational milestone for BLR Airport. As India's regulatory framework evolves around inclusive infrastructure, this achievement positions BLR Airport as a benchmark for regulatory best practices and may influence similar initiatives across other Indian airports.

Source: Airport Council International Website

f) InterGlobe and CAE open pilot training centre in Mumbai

August 26, 2025- CAE Simulation Training Pvt. Ltd. ("CSTPL"), a joint venture between InterGlobe Enterprises and CAE, has announced the opening of a new 44,000 sq ft pilot training centre in Mumbai, scheduled to begin operations in early 2026. The facility will initially house two Airbus A320 full-flight simulators with capacity for up to six and will offer type rating, recurrent training and proficiency checks across Airbus, ATR and Boeing aircraft. This expansion adds to CSTPL's existing training network in Greater Noida, Gurugram and Bengaluru, which collectively support up to 23 simulators.

DLL Analysis: The launch of CSTPL's Mumbai centre addresses the urgent regulatory and industry need for increased pilot training infrastructure, as India faces a projected requirement of 30,000 commercial pilots over the next two decades. From the perspective of Commercial Pilot Licenses issuances declining by 17% in 2024, this development is a critical step in building domestic capacity to meet long-term safety, licensing, and certification standards aligned with global civil aviation norms.

Source: CAE Press Release

g) Air India and Indian Oil Corporation Limited ("IOCL") sign MoU for Sustainable Aviation Fuel

August 19, 2025- In a major step towards sustainable aviation, Air India and IOCLhave signed a Memorandum of Understanding ("MoU") for the supply of Sustainable Aviation Fuel. This strategic collaboration supports Air India's commitment to achieving the IATA Net Zero by 2050 target and aligns with India's national goal of 5% SAF blending by 2030. The agreement also builds on IndianOil's milestone of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery. This will enable the supply of internationally certified, low-carbon fuel for aviation.

DLL Analysis: Air India is integrating SAF into a broader sustainability strategy that includes a 570-aircraft fleet renewal plan, expansion of non-stop international routes to reduce overall emissions and adoption of advanced flight planning and optimization systems. The airline is also working with CSIR and the Indian Institute of Petroleum on SAF R&D and implementing operational efficiencies such as single-engine taxiing, autonomous EV towing and reduced use of single-use plastics. This partnership marks a significant move in building and positioning India's SAF supply chain in green aviation market. By combining IndianOil's fuel production capabilities with Air India's commitment to cleaner operations, the MoU sets a new benchmark for decarbonizing air travel in India and beyond.

Source: Air India Website

h) GMR Airports to develop Rs 415 Cr cargo city at Delhi Airport

August 14, 2025- GMR Airports Ltd has been selected to develop a Cargo City spanning 50.5 acres at Indira Gandhi International Airport ("IGIA"), Delhi. Operated by Delhi International Airport Ltd ("DIAL"), a GMR subsidiary, IGIA is the country's largest airport. The cargo hub will include an optional 10-acre land parcel for future use and will be developed on a revenue share model, with a minimum guaranteed payment of Rs. 415.74 crore to DIAL until 2036, extendable by 30 years. GMR will finance, design, construct and operate the facility and has received the Letter of Intent to Award from DIAL. The transaction qualifies as a related party deal conducted on an arm's length basis with all regulatory approvals secured as per SEBI and Companies Act, 2013 norms.

DLL Analysis: The project reflects growing investor confidence in airport-led cargo infrastructure.

Its revenue-share model balances risk while ensuring predictable returns for DIAL.

GMR's long-term commitment indicates strong outlook for air cargo growth in India.

Source: Economic Times

i) SpiceJet finalizes lease for five more Boeing 737

August 13, 2025- SpiceJet has finalized a lease agreement for five additional Boeing 737 aircraft, further strengthening its fleet ahead of the peak winter travel season. Most of these aircraft are expected to join the airline's fleet in October 2025, with a few arriving slightly earlier. The new planes, leased under wet lease arrangements, will operate through to May 2026, covering both the winter and early summer travel periods. This latest move brings SpiceJet's total new fleet additions to 10 Boeing 737s following a similar lease deal announced last month.

DLL Analysis: Leasing more aircraft through wet lease will prove to be an important decision for SpiceJet, as it is currently undergoing recovery and aiming to return to profitability. During the peak business months, this could be a strategic move, helping SpiceJet recover the losses incurred in the last quarter, especially.

Source: SpiceJet Press Release

j) DGCA issues show cause notice to IndiGo over simulator training lapses

August 12, 2025- The Directorate General of Civil Aviation ("DGCA") has issued a show cause notice to IndiGo following concerns over simulator training conducted for nearly 1,700 pilots. An investigation revealed that Category C or critical airfield training was carried out using non-qualified simulators, particularly for operations at airports such as Calicut, Leh and Kathmandu.

DLL Analysis: The notice highlights regulatory scrutiny on pilot training standards, emphasizing the need for certified simulators in safety-critical training. This incident underscores the importance of stringent compliance to maintain operational safety and protect passenger confidence in Indian aviation.

Source: Economic Times

k) Adani defence systems and technologies limited acquires Indamer Technics Private Limited

August 11, 2025- Adani Defence Systems and Technologies Limited ("ADSTL"), through its joint venture Horizon Aero Solutions Limited in partnership with Prime Aero Services LLP, has signed a definitive agreement to acquire 100% stake in Indamer Technics Private Limited ("ITPL"), a leading private-sector MRO provider in India. Located in Nagpur's MIHAN SEZ, ITPL operates a greenfield facility with 15 aircraft bays across 10 hangars and holds approvals from DGCA, FAA and other global regulators. The acquisition strengthens ADSTL's position in the MRO sector, complementing its existing portfolio and expanding its pan-India footprint.

DLL Analysis: This acquisition marks a strategic step in consolidating India's private MRO industry, essential for supporting the anticipated growth of the Indian aviation sector. Leveraging ITPL's advanced infrastructure and Nagpur's strategic location, ADSTL is poised to enhance operational efficiency and service capabilities, promoting self-reliance and competitiveness in India's aviation maintenance ecosystem.

Source: Adani Group Website

l) IndiGo and KLM expand codeshare agreement

July 30, 2025 – IndiGo and KLM Royal Dutch Airlines ("KLM") have formally expanded their bilateral codeshare arrangement, allowing IndiGo to place its airline designator code on KLM-operated flights to 30 destinations across Europe and the UK via Amsterdam. This arrangement is a direct operational extension of the Memorandum of Understanding executed between IndiGo, KLM, Air France, Delta Air Lines and Virgin Atlantic during the 81st IATA Annual General Meeting held in June 2025. Conversely, the agreement grants KLM reciprocal access to 24 destinations within IndiGo's domestic network, significantly enhancing connectivity for both carriers.

DLL Analysis: This expanded codeshare arrangement reflects the evolving regulatory and commercial alignment between Indian and European air carriers, signalling a strategic shift toward cross-juridictional cooperation in global aviation. The move not only enhances network interoperability but also expands IndiGo's access to key European hubs, aligning with India's increasing emphasis on liberalised air services and international commercial aviation partnerships.

Source: IndiGo Website

m) Singapore Tourism Board and IndiGo sign MoU to promote travel

July 29, 2025 – IndiGo and Singapore Tourism Board ("STB") have entered into a year-long Memorandum of Understanding aimed at jointly promoting Singapore as a premier leisure and business destination for Indian travellers. This collaboration marks the first formal partnership between the two entities.

India continues to be a significant market for Singapore, with over 500,000 Indian visitors recorded in the first half of 2025 and more than 270 weekly flights connecting 15 Indian cities to Singapore's Changi Airport. Singapore remains one of IndiGo's top international routes. To mark 60 years of diplomatic relations between India and Singapore, IndiGo will launch its IndiGoStretch business product on Singapore–Delhi and Singapore–Mumbai routes starting August 9, 2025. The partnership also includes a nationwide campaign featuring co-branded content, travel offers, trade outreach, and targeted marketing to boost demand and traveller engagement.

DLL Analysis: This strategic MoU leverages strong bilateral ties and robust travel demand between India and Singapore. The initiative is designed to enhance connectivity and passenger experience, signalling both parties' commitment to expanding tourism and business travel while capitalizing on growing market potential.

n) DGCA releases traffic data for domestic airlines

July 24, 2025 – The Directorate General of Civil Aviation ("DGCA") has published its monthly review of passenger traffic data submitted by scheduled domestic airlines. Between January and June 2025, Indian carriers transported 851.74 lakh passengers reflecting an annual growth of 7.34 percent compared to 793.48 lakh passengers in the same period last year. The month of June alone recorded growth of 3.02 percent in passenger traffic.

The report highlights that FlyBig recorded the highest percentage of flight cancellations at 38.86 percent followed by Alliance Air at 6.13 percent, IndiaOne at 4.29 percent and SpiceJet at 3.27 percent while Akasa Air reported the lowest flight cancellation rate at just 0.05 percent. In terms of market share, IndiGo led with 64.4 percent followed by Air India Group with 26.9 percent and Akasa Air with 5.2 percent. The DGCA also recorded 1279 passenger complaints in June 2025. IndiGo maintained its lead in on-time performance followed by Akasa Air, Air India Group, Alliance Air and SpiceJet.

DLL Analysis: The latest DGCA figures reflect a steady recovery in domestic air travel and reinforce the market dominance of IndiGo and Air India Group. High cancellation rates for smaller regional carriers such as FlyBig indicate persistent reliability and operational concerns while Akasa Air's low disruption rate and improved performance enhance its position among new entrants and reflect airlines steady growth. Meanwhile, the growing number of passenger complaints raise questions regarding the services standards of Indian air carriers and may require or result in further regulatory review and/or oversight.

Source: DGCA Website

o) Godrej enterprises group signs contract with Pratt & Whitney

July 24, 2025 – Godrej Enterprises Group's Aerospace division has secured a significant contract from Pratt & Whitney, a subsidiary of RTX, to manufacture advanced aerospace components for aircraft engines. This milestone strengthens Godrej's position as a reliable supplier to global aircraft engine manufacturers and marks an important step in expanding its technological and manufacturing capabilities within the aerospace sector.

The agreement reflects Godrej's commitment to developing India's precision aerospace manufacturing ecosystem, supported by its existing 35,000 square meters of production capacity and an additional 48,500 square meters under development. This partnership highlights India's growing role in the global aviation supply chain and highlights Godrej's focus on innovation, infrastructure, and adherence to world-class quality standards.

DLL Analysis: This contract signifies a strategic advancement for Godrej Enterprises in the aerospace domain, reinforcing India's emergence as a key player in high-precision manufacturing. The collaboration with Pratt & Whitney is poised to enhance technology transfer and production scale, aligning with broader national objectives to integrate more deeply into global aerospace supply chains.

Source: Godrej Enterprises Group

p) Air India seeks USD 200 Million loan for aircraft acquisition

July 22, 2025 – Air India has applied for a loan of approximately USD 200 million to finance the purchase of Boeing 777 aircraft from a US-based leasing company. The loan will be availed by AI Fleet Services IFSC Ltd. ("AIFS"), a wholly owned subsidiary of Air India Limited registered as a finance company at GIFT City, which manages aircraft acquisitions and leasing activities for both Air India's full-service operations and its low-cost arm, Air India Express.

This move comes amid ongoing challenges faced by Air India in expanding its fleet due to global supply chain disruptions and limited availability of aircraft in the open market.

DLL Analysis: AIFS's loan application highlights the persistent difficulties in fleet expansion within the current global aviation supply environment. By leveraging its GIFT City subsidiary for financing, the Air India Group is adopting a strategic financial approach to mitigate delivery delays and maintain operational growth despite market constraints.

Source: GIFT City Website

q) Jetstar Airways and IndiGo sign new codeshare agreement boosting Australia and New Zealand tourism sectors

July 15, 2025 – IndiGo has signed a codeshare agreement with Jetstar Airways, enabling customers to book flights to 14 destinations across Australia and New Zealand via transit points including Singapore, Bangkok, and Phuket. The partnership, effective from September 2025 (subject to regulatory approvals), allows for seamless booking and baggage transfer through IndiGo's platform to cities such as Sydney, Auckland, and the Gold Coast.

Simultaneously, IndiGo has entered into a Memorandum of Understanding ("MoU") with Bangalore International Airport Ltd. ("BIAL") to develop a Maintenance, Repair and Overhaul ("MRO") facility at Kempegowda International Airport, Bengaluru. Spanning approximately 31 acres, the facility will cater to both narrow-body and wide-body aircraft, strengthening IndiGo's infrastructure and operational capacity in South India. The MoU also outlines potential collaborations between IndiGo and BIAL in network development and marketing initiatives.

DLL Analysis: IndiGo's two-pronged strategic move, expanding international connectivity through a codeshare agreement with Jetstar, while simultaneously investing in domestic MRO infrastructure reflects a calibrated growth strategy. The codeshare deal enhances IndiGo's international reach without requiring immediate long-haul aircraft acquisition, while the Bengaluru MRO facility positions the airline to better manage fleet reliability and cost efficiencies.

Source: Jetstar Website

r) Aircraft Accident Investigation Bureau's preliminary report on Air India crash

July 12, 2025- India's aviation regulator released a preliminary report on the June 12 crash of Air India flight AI171 from Ahmedabad to Gatwick, revealing that both engines shut down moments after takeoff due to fuel cutoff switches being activated within one second of each other. The Boeing 787-8 Dreamliner bearing registration VT-ANB crashed just beyond the airport boundary, shortly after a "Mayday" call.

The cockpit voice recorder captured one pilot questioning the other about the switched off state of the fuel switches, who in turn denied switching them off. The pilots attempted relight procedures, but only partial engine recovery was achieved. The aircraft was carrying 230 passengers and 12 crew on board. No bird strikes, fuel contamination, or dangerous goods were found.

DLL Analysis: The preliminary report has prompted widespread concern, with global pilot associations urging restraint against speculative theories like sabotage, noting insufficient data. Regulatory bodies stress that no conclusions can yet be drawn about technical faults or crew actions. Meanwhile, victim families have criticized transparency lapses and called for accountability, deepening scrutiny of Air India's safety practices and the investigation's integrity.

Source- AAIB Website

s) Black Box Data recovery underway in Air India Flight AI-171 crash investigation

June 26, 2024- On June 12, 2025, Air India Flight AI-171, a Boeing 787-8 flying from Ahmedabad to London Gatwick, tragically crashed shortly after takeoff, resulting in the loss of over 270 lives. Following the accident, the Aircraft Accident Investigation Bureau ("AAIB") immediately launched an investigation on June 13 and formed a multidisciplinary team led by the Director General of AAIB. The team included specialists in aviation medicine, air traffic control and representatives from the United States National Transportation Safety Board ("NTSB'), the country where the aircraft was designed and manufactured. The investigation commenced in accordance with international protocols outlined by ICAO Annex 13 and India's Aircraft (Investigation of Accidents and Incidents) Rules of 2017.

Both the Cockpit Voice Recorder and Flight Data Recorder were recovered from the crash site on June 13 and June 16, respectively. These devices were securely stored under continuous police protection and CCTV surveillance in Ahmedabad before being transported by Indian Air Force aircraft to the AAIB laboratory in Delhi on June 24. Data extraction began the same evening and by June 25, the memory modules from the front black box were successfully accessed and downloaded. Presently, the analysis of the black box is completed and subsequently, a preliminary report has also been released identifying the cause of the crash being the fuel switches going from 'run' to 'cut off'. This change led to immediate cut off of fuel supply to the engines, resulting in complete shut down of the engines and loss of thrust.

DLL Analysis: As the biggest aviation accident in India's history, the world's eyes are on the country to see the capabilities of India's newly inaugurated black box investigation lab and whether it can match the international investigation standards and uncover any potential hazards to a widely used aircraft that, until this tragic accident, had a decade long history of zero fatal accidents. The outcome will not only impact India's global aviation reputation but will also set a precedent for the competency and accuracy that can be expected from India with respect to incidents and accidents that occur on Indian soil. While the preliminary report has been released and has been well received globally, it is critical that the final investigation is concluded in thorough, impartial and timely manner to restore public confidence and strengthen safety measures going forward to prevent further tragedies.

Source: Press Information Bureau

t) Ministry of Civil Aviation issues Draft Aircraft (Demolition of Obstructions Caused by Buildings and Trees, etc.) Rules, 2025

June 18, 2025- The Ministry of Civil Aviation has issued a notification (G.S.R. 396(E)) publishing the draft of the Aircraft (Demolition of Obstructions Caused by Buildings and Trees, etc.) Rules, 2025, under Sections 10, 11, 18, 20, and 33 of the Bharatiya Vayuyan Adhiniyam, 2024.

These rules aim to address and remove obstructions around airports that pose risks to aviation safety. The public has been invited to submit objections or suggestions within 21 days from the date of Gazette publication.

Key Points from the Draft Aircraft (Demolition of Obstructions) Rules, 2025:

• Notification and Violation Reporting: Aerodrome officers must notify owners of any building or tree violating height restrictions and report such violations to the Director General of Civil Aviation ("DGCA").
• Owner's Obligation to Provide Details: Upon DGCA's order, owners must submit detailed plans of the structure within 60 days with possible extension, failing which aerodrome data may be relied upon.
• Verification and Action Orders: Aerodrome officials will verify details on-site, DGCA can order demolition, height reduction, or tree cutting after hearing from the owner if the alleged violations are confirmed.
• Appeal Process: Owners aggrieved by DGCA's order can appeal by submitting Form A, documents and a one-time Rs 1,000 fee and then subsequently appellate officers will review and decide after a hearing.
• Enforcement and Compensation: Non-compliance within 60 days leads to District Collector-initiated demolition or modification, lawful owners may claim compensation, but no compensation is allowed for violations after the notification date.

DLL Analysis: While there are international guidelines regarding the constructions and overall maintenance of areas around airports to ensure safety and security, matters such as enforcement fall within the domestic aviation regulator's domain. The draft Aircraft (Demolition of Obstructions) Rules, 2025, issued by the Ministry of Civil Aviation represent a critical step towards strengthening aviation safety by addressing urban encroachments near airports. By clearly defining the process for identifying, notifying and removing unauthorized structures, these rules aim to streamline enforcement and reduce delays in mitigating flight hazards. However, successful implementation will depend on effective coordination between aerodrome authorities, owners and local administration, along with transparency in compensation mechanisms to ensure fairness and compliance.

Source- Ministry of Civil Aviation Website

u) Draft Aircraft (Carriage of Dangerous Goods) Rules, 2025 issued for Public Comments

June 18, 2025 – The Ministry of Civil Aviation has released the draft Aircraft (Carriage of Dangerous Goods) Rules, 2025 for stakeholder comments. Notified through G.S.R. 397(E) under the Bharatiya Vayuyan Adhiniyam, 2024, the rules aim to establish a robust legal and operational framework for the safe and compliant transport of dangerous goods by air. The draft rules apply to all aircraft registered in India, Indian operators operating abroad, all aircraft operating in or over Indian airspace and entities such as air cargo operators, shippers, and designated postal services.

The proposed rules mandate operator certification from the Director General of Civil Aviation for transporting dangerous goods and enforce strict adherence to the internationally accepted Technical Instructions. They provide clear provisions for the handling of explosives, radioactive materials, and emergency exemptions in national interest. The draft outlines detailed responsibilities for both shippers and operators, including proper documentation, classification, labeling, and safe handling. It also requires mandatory training and certification for all personnel involved, empowers the DGCA to inspect and enforce compliance, and introduces a fee structure for various regulatory approvals.

DLL Analysis: The draft Aircraft (Carriage of Dangerous Goods) Rules, 2025 envisions the establishment of a robust legal framework for the safe transport of hazardous materials by air in India, aligned with international standards such as the ICAO Technical Instructions. The rules lay down strict requirements for classification, packaging, labeling and documentation of dangerous goods, while clearly defining the responsibilities of shippers, operators, and other stakeholders involved in the transport process. They mandate regular training for all personnel handling such goods and set out detailed procedures for incident reporting, inspection, and emergency response. By enhancing regulatory oversight and ensuring that dangerous goods are handled with due care, the rules aim to improve air safety, prevent accidents and strengthen India's aviation compliance and preparedness.

Source- Ministry of Civil Aviation Website

v) Govt of Karnataka, BACL & ANSR unveil Global Innovation Hub at Bengaluru Airport City

June 17, 2025- The Government of Karnataka, Bengaluru Airport City Ltd. ("BACL") and ANSR have announced the launch of "District I," a Global Innovation Hub within the Bengaluru Airport City Business Park. This collaborative initiative is designed to bring together Global Capability Centers, startups, academia, venture capital firms, corporate labs, and public institutions to accelerate enterprise-led innovation and deep-tech entrepreneurship.

DLL Analysis: District I is strategically positioned within the 28 million square foot Bengaluru Airport City and reflects a long-term vision of building a smart, sustainable and innovation-driven urban economy. By combining research infrastructure, academic institutions and enterprise support within a single ecosystem, the initiative is likely to streamline tech-commercialisation processes and foster high-value job creation. It also provides a model for how airport-linked urban development can be leveraged to build global innovation capacity.

Source: Economic Times

w) Aernnova & Mahindra Aerostructures sign USD 300 Million multi-year contract

June 17, 2025- Aernnova Aerospace and Mahindra Aerostructures Pvt. Ltd. ("MASPL") have entered into a multi-year agreement worth approximately USD 300 million. Under this partnership, MASPL will manufacture metal sub-assemblies and components for Airbus and Embraer aircraft, supplying to Aernnova sites in Spain, the UK, Portugal, and Brazil. The contract marks a major milestone in their partnership that began in 2013.

Senior executives from both companies emphasized the importance of the collaboration in supporting production ramp-ups and enabling "Make in India" aerospace capabilities. The deal expands MASPL's role in the global aerospace supply chain and opens opportunities for industrial process digitization and sustainability-driven growth.

DLL Analysis: This contract strengthens India's aerospace manufacturing sector by anchoring it within a global supply chain through long-term collaboration with a Tier 1 aerostructures supplier. It demonstrates MASPL's maturity in handling advanced aerospace programs while reinforcing India's credibility as a trusted partner in high-value manufacturing. The deal aligns with national priorities such as "Make in India" and reflects confidence in India's capability to deliver at global standards.

x) Adani Airports raises USD 750 Million via ECB for expansion and upgrades

June 4, 2025 - Adani Airports Holdings Ltd ("AAHL"), a subsidiary of Adani Enterprises, has raised USD 750 million through External Commercial Borrowings ("ECB") from a consortium led by First Abu Dhabi Bank, Barclays PLC and Standard Chartered Bank. The funds will refinance existing debt and support infrastructure upgrades and capacity expansion at six airports, including Ahmedabad, Lucknow and Jaipur. AAHL also aims to grow its non-aeronautical businesses such as retail, food and beverage and duty-free services.

AAHL served 94 million passengers in FY 2024-25 with a capacity of 110 million and plans to triple capacity to 300 million by 2040. The upcoming Navi Mumbai International Airport will add 20 million passengers in the first phase.

DLL Analysis: This ECB transaction demonstrates strong investor confidence in AAHL's growth strategy and India's aviation infrastructure. The refinancing and expansion plans indicate a balanced approach to managing debt while investing in capacity and service enhancements, essential for sustaining long-term operational and financial stability. The proposed expansion will also result in an increase in scheduled airline operations, increased passenger traffic, and ultimately increased growth of the industry sector's revenue.

B. Key International Updates

a) ICAO safety report 2025 highlights critical global aviation safety trends and emerging risks

August 11, 2025 – The International Civil Aviation Organization ("ICAO") released its 2025 Safety Report tilted 'State of Global Aviation safety', revealing key insights into global aviation safety trends in 2024. The report highlights that over 80% of fatalities resulted from accidents related to loss of control inflight (LOC-I) and bird strikes, highlighting these as top priorities for safety interventions. Additionally, turbulence-related accidents accounted for around 75% of serious injuries, emphasizing the continued need for enhanced turbulence detection and avoidance measures.

The report also identifies five global high-risk categories, controlled flight into terrain ("CFIT"), loss of control in-flight ("LOC-I"), mid-air collision ("MAC"), runway excursion ("RE") and runway incursion ("RI"), which represented 25% of fatalities and 40% of fatal accidents in 2024. Moreover, regional safety disparities persist, with the Asia-Pacific region accounting for the largest share of traffic and fatalities, while other regions like Western and Central Africa ("WACAF") experience higher accident rates due to smaller traffic volumes.

On the technological front, ICAO highlights growing concerns over Global Navigation Satellite System ("GNSS") radio frequency interference, including jamming and spoofing, which pose significant threats to aviation navigation and timing systems worldwide. To mitigate these risks, ICAO is advancing guidance on GNSS resilience and encouraging member states to implement regulatory and operational countermeasures.

The report further stresses the increasing importance of civil-military cooperation to optimize airspace use and enhance safety, particularly in conflict zones and during humanitarian operations. This collaboration supports flexible airspace allocation, enhances situational awareness and drives innovation for future air traffic management challenges, including the integration of drones and advanced air mobility.

DLL Analysis: The report urges regulatory authorities to strengthen enforcement of safety standards on LOC-I and CFIT prevention. It highlights the need for legal frameworks addressing GNSS interference and mandates for robust countermeasures. Enhanced civil-military coordination must be legally supported to ensure safe and efficient airspace management.

Source: ICAO Website

b) Global airlines urge ICAO to raise pilot retirement age to 67

August 28, 2025- The International Air Transport Association ("IATA") has submitted a formal proposal to the U.N.'s International Civil Aviation Organization ("ICAO"), seeking to raise the maximum age for commercial airline pilots from 65 to 67. The proposal will be reviewed at ICAO's upcoming General Assembly on September 23. IATA, representing around 350 global airlines, cited growing pilot shortages and rising global air travel demand as justification for the change. Under the proposal, pilots over 65 would still be required to fly alongside a co-pilot younger than 65.

The move has been met with opposition from major U.S. pilot unions, including the Allied Pilots Association, which raised concerns about the lack of safety data on older pilots. Similar efforts to raise the age limit in the U.S. previously failed in Congress in 2023.

DLL Analysis: The move to increase the retirement age reflects industry pressure to address pilot shortages amid growing demand. Meanwhile, India has submitted its own working paper to ICAO calling for a global code of conduct to prevent poaching of experienced pilots and aviation staff by foreign airlines. India highlighted that such practices hamper the orderly growth of its fast-expanding aviation sector and negatively impact Indian carriers' competitiveness internationally. The inclusion of India's concerns alongside the retirement age proposal underscores the complex workforce challenges facing global aviation, including pilot availability, safety and fair labor practices.

Source: Reuters

c) Russia's commercial Jet production falters amid sanctions and industrial challenges

August 8, 2025- Russian aircraft manufacturers have delivered only one of the 15 planned commercial jets this year, highlighting ongoing struggles caused by Western sanctions and high domestic interest rates. Since the 2022 invasion of Ukraine, sanctions have cut off access to foreign-made aircraft parts, forcing Russian airlines, largely reliant on Airbus and Boeing fleets, to use complex indirect import routes for critical components. Efforts to shift to domestic production face major hurdles, including a lack of technology, facilities and skilled engineers. The government has repeatedly lowered production targets, with serial production of key models like the MC-21 and Superjet-100 now delayed until 2026.

DLL Analysis: Russia's aviation production issues are emblematic of deeper industrial malaise exacerbated by sanctions and economic pressures. The gap in new aircraft supply is pushing up airfares domestically, impacting connectivity across Russia's vast geography. Delays in domestic aircraft projects like the MC-21, which suffers from reduced performance without imported parts, reflect the challenges of substituting complex foreign technology. These difficulties, combined with broader industrial recession risks, underline the long-term impact of sanctions on Russia's aviation and manufacturing sectors.

Source: Reuters

d) AirNav Systems ranks China and India as Asia's top two aviation markets by aircraft movements

August 1, 2025 – AirNav Systems has released its latest air traffic data for the period of July 1–31, 2025, revealing China as the busiest aviation market in Asia with an average of 32,760 daily aircraft movements. India secured the second position with 7,370 daily movements, narrowly edging out Japan, which recorded 7,295 flights per day. The data shows China's continued regional dominance, followed by a mix of emerging and established aviation markets such as Indonesia, South Korea, Thailand and Malaysia. Notably, Southeast Asian nations also featured prominently in the top 10, highlighting their growing role in regional connectivity and tourism.

At the airport level, Shanghai Pudong International Airport topped the list with 1,587 daily aircraft movements, followed by Guangzhou and Tokyo Haneda. New Delhi was the only non-East Asian airport in the top five, while other high-ranking hubs included Seoul Incheon, Chengdu, Kuala Lumpur and Hong Kong. The data also showed that Chinese airlines lead in operational volume, with China Eastern and China Southern occupying the top two spots, and India's IndiGo ranking third among Asia's busiest carriers with over 2,000 daily flights.

DLL Analysis: AirNav's July 2025 traffic rankings reflect the current balance of power in Asian aviation, with China remaining a dominant force due to its vast domestic market and strong international network. India's placement ahead of Japan indicates a shifting dynamic, driven by strong domestic demand and expanding global connectivity. The inclusion of multiple Southeast Asian countries and airports in the top 10 signals the region's sustained recovery and growth post-pandemic.

Source: AirNav Systems Website

e) US and EU concluded an agreement to exempt aerospace products from new tariffs

July 28, 2025- The United States and the European Union have provisionally agreed to exclude aircraft and related parts from the imposition of new tariffs. This agreement permits the US to enforce a 15% tariff on most EU goods while maintaining tariff-free trade for the aerospace sector. The deal aims to prevent disruptions in aircraft production and deliveries across both regions and reflects a rare coordinated effort to uphold the principles of a 1979 multilateral agreement that established duty-free trade in civil aviation products.

DLL Analysis: The agreement signals a pragmatic resolution to transatlantic trade tensions, safeguarding the aerospace supply chain from tariff-induced disruptions. It underscores the importance of industry collaboration in preserving global aviation commerce stability amid broader geopolitical disputes.

Source: Reuters

f) Boeing begins assembly of first 777-8F freighter

July 25, 2025- Boeing has commenced the assembly of the inaugural 777-8 Freighter, a key member of the 777X family. Since launching the program in 2022, Boeing has secured orders for 59 units of the 777-8 Freighter from airline and cargo operators. The 777X series also includes the 777-9 and 777-8 passenger aircraft and represents the latest generation of Boeing's widebody offerings.

DLL Analysis: The start of assembly reflects Boeing's commitment to innovation and meeting evolving market demands in air freight. This development strengthens Boeing's competitive positioning within the widebody freighter segment amid growing global cargo transport requirements.

Source: AviTrader Aviation News

g) Russian Angara Airlines Antonov An-24 crashes in far east

July 24, 2025- A Russian Antonov An-24 aircraft operated by Angara Airlines crashed in the Amur region near Tynda, resulting in 48 fatalities including five children. The plane, carrying 42 passengers and six crew, disappeared from radar shortly before landing. The wreckage was located approximately 16 kilometers from the airport. Despite having passed a recent technical inspection, the nearly 50-year-old aircraft had been involved in four incidents since 2018. Regional authorities declared three days of mourning following the tragedy.

DLL Analysis: The incident highlights the growing need of aviation safety oversight, maintenance standards, and considerations for aging aircraft operations. While the cause of the incident is unclear at this stage, the advanced age of the aircraft and its previous incident record give rise to wider concerns regarding the safe operation age of commercial aircraft. Further investigation and its finding are likely to provide direction on incident prevention for older aircraft.

h) Hawaiian Airlines faces cyberattack, flights remain unaffected

June 26, 2025- Hawaiian Airlines, a subsidiary of Alaska Air Group, reported a cybersecurity incident that affected parts of its IT infrastructure. While details remain limited, the airline's reference to a "cybersecurity event" aligns with typical characteristics of a ransomware attack. Despite the disruption, all flights operated on schedule and the Federal Aviation Administration ("FAA") confirmed that flight safety remained uncompromised. The airline has taken protective steps, engaged cybersecurity experts and notified relevant federal authorities.

Public statements offered little detail on which systems were impacted or whether customer data was compromised. Interestingly, responses to media queries came from a Gmail account rather than an official domain, raising questions about the status of internal communication tools. External cybersecurity professionals are currently assisting with the investigation, and a full assessment is ongoing.

DLL Analysis: The incident shows the increasing vulnerability of aviation infrastructure to cyber threats. While flight operations remained unaffected, the reliance on external communication and vague disclosures suggest a potentially significant breach. Airlines, particularly those undergoing digital transitions or mergers may face increased cyber exposure during IT integration. This event highlights the urgent need for robust cyber risk protocols and incident response frameworks across the aviation industry.

Source: Reuters

i) China Airlines to invest over USD 2 Billion in New Airbus Aircraft for fleet renewal

June 25, 2025- Taiwan's flagship carrier, China Airlines, has announced a major fleet upgrade with an investment of over USD 2 billion to acquire five Airbus A350 900 long haul jets and eight A321neo aircraft for its medium and short haul routes. The airline has signed a deal to purchase five A321Neos from Air Leasing Corporation for USD 240 million, while negotiations continue for the remaining three. The A350s come with a maximum sticker price of USD 1.965 billion, though leasing options may slash that to approximately USD 1.148 billion. With 15 A350 900s already in service and the 18th A321Neo bound for delivery soon, this move is a key part of the carrier's strategy to modernize its fleet amidst delays in Boeing 787 9 deliveries.

DLL Analysis: China Airlines' decision comes across as both bold and pragmatic. By leaning into Airbus assets now, the airline sidesteps the uncertainty of Boeing delivery delays and ensures its service commitments stay on track. The blended mix of owned and leased aircraft gives them breathing room during this transitional phase. It also highlights how airlines increasingly rely on fleet flexibility and diversification to manage geopolitical and supply chain headwinds.

Source: Reuters

C. Significant developments

a) Cabinet clears Rs. 1507 Cr greenfield airport for Kota-Bundi

August 19, 2025- The Cabinet Committee on Economic Affairs, chaired by PM Narendra Modi, has approved the development of a Greenfield Airport at Kota-Bundi at a cost of Rs1507 crore. The project will be executed by the Airports Authority of India on 440.06 hectares of land provided by the Rajasthan government. Designed for A-321 aircraft, the airport will feature a 20,000 sqm terminal, 3.2 km runway, 7 parking bays and facilities to handle 2 million passengers annually.

Currently, Kota's existing airport lacks the infrastructure for commercial operations due to runway limitations and urban encroachment. The new airport aims to serve Kota's growing population, especially its role as an educational and industrial hub, with improved air connectivity.

DLL Analysis: The approval of the Greenfield Airport addresses long-standing infrastructure gaps in one of India's fastest-growing regional centers. It is expected to catalyze economic growth, improve regional connectivity and align with the government's UDAN and sustainability goals. This development also reflects a strategic shift toward creating modern aviation facilities in high-demand, underserved cities.

Source: Press Information Bureau

b) Air India Express joins International Air Transport Association ("IATA")

August 27, 2025 – In a significant development for India's aviation sector, Air India Express has officially joined IATA, marking its compliance with global safety and operational benchmarks. A key requirement for IATA membership is successful registration under the IATA Operational Safety Audit ("IOSA"), which entails adherence to over 900 internationally recognised standards. Air India Express, which has been on the IOSA registry since 2017, now formalises its commitment to international aviation norms by becoming a full IATA member.

DLL Analysis: The airline's IATA membership enhances its regulatory profile at a time of network and fleet expansion. It reflects a deeper alignment with global aviation standards and may open avenues for broader strategic partnerships.

Source- Deccan Herald

c) Prime Minister Modi inaugurates New Terminal and extended runway at Thoothukudi Airport

July 26, 2025- Prime Minister Narendra Modi inaugurated the newly constructed terminal and extended runway at Thoothukudi Airport. The new 17,340 square meter terminal, designed in Chettinad architectural style, aims to increase passenger capacity to 2 million annually within the next five to ten years. The runway extension from 1,350 meters to 3,115 meters now permits night landings and accommodates larger aircraft such as the Airbus A320 and A321. Enhanced passenger amenities include 21 check-in counters, 7 baggage scanners, 3 aerobridges, and facilities for special needs passengers. The airport's handling capacity has increased substantially from 156 to 1,400 passengers per hour.

DLL Analysis: This development represents a strategic enhancement of regional air infrastructure, potentially boosting connectivity and economic growth. The upgraded facilities and runway capacity position Thoothukudi as a significant node in both domestic and international air travel networks.

d) Global Summit in Durban to address aviation workforce shortage

July 30, 2025- The International Civil Aviation Organization ("ICAO") and South African Civil Aviation Authority ("SACAA") will co-host the 3rd Next Generation of Aviation Professionals ("NGAP") Global Summit from August 12-14, 2025, in Durban. The summit will convene aviation leaders, government officials, educators and industry stakeholders to discuss coordinated efforts in developing a skilled and inclusive aviation workforce. ICAO projects a global demand for over 2.2 million aviation professionals by 2037, underscoring an urgent need for talent expansion. South Africa's active participation aligns with the African Union's Single African Air Transport Market initiative, expected to create nearly 600,000 jobs continent-wide.

DLL Analysis: The summit reflects a critical industry acknowledgment of workforce challenges amid expanding aviation demand. Collaborative international efforts are essential to ensure the sector's sustainability, inclusivity, and capacity to meet future operational requirements.

e) Air India Expands Global reach through codeshare Partnerships with Icelandair and Air Mauritius

June 2, 2025- Air India has recently strengthened its international footprint by entering expanded codeshare agreements with Icelandair and Air Mauritius, announced at the 81st IATA AGM in New Delhi. The partnership with Icelandair covers 15 routes connecting India and Europe, facilitating smoother travel through major European hubs to Reykjavik, a key transit point between Europe and North America. Meanwhile, the enhanced deal with Air Mauritius now includes 17 routes linking India with Mauritius, Réunion, Madagascar, and important African cities such as Johannesburg and Cape Town. Both agreements offer passengers seamless single-ticket bookings and through-checked baggage, significantly improving travel convenience.

DLL Analysis: These codeshare agreements demonstrate a strategic, asset-light expansion model that helps Air India grow its network without the regulatory burdens of additional flights. By partnering with regional airlines, Air India effectively navigates complex bilateral aviation regulations and enhances market access. This approach highlights the increasing importance of legal compliance and collaborative alliances in international aviation to maintain competitiveness while ensuring operational efficiency.

Source- Air India website

f) Air India expands Global Reach through 4 New Interline Partnerships

June 3, 2025- Air India has entered four interline agreements with airBaltic, Bulgaria Air, Cyprus Airways and Uzbekistan Airways which are announced during the 81st IATA AGM in New Delhi. These partnerships grant Air India guests seamless access to 16 additional destinations across six countries in Europe, the Baltics, Eastern Europe, and Central Asia.

Through coordinated single-ticket itineraries and baggage handling, customers can now travel to cities like Riga, Tallinn, Vilnius, Sofia, Varna, Burgas, Larnaca, and a network of Uzbek destinations including Tashkent and Samarkand all via Air India's European and Gulf gateways. In return, passengers from these partner airlines gain access to over 30 Indian cities, including major hubs such as Delhi, Mumbai, Bengaluru, and Chennai.

DLL Analysis: This expansion reflects a strategic move by Air India to boost connectivity without deploying new aircraft. By leveraging interline agreements, the airline enhances its global footprint and enriches route offerings for both inbound and outbound travellers. Coordinated baggage logistics and unified ticketing, enhance passenger convenience and position Air India as a more competitive option in the international network.

Source: Air India

g) IndiGo, Delta, Air France-KLM & Virgin Atlantic forge partnership to enhance India-Europe-North America Connectivity

June 1, 2025- IndiGo has signed a Memorandum of Understanding ("MoU") with Delta Air Lines, Air France KLM and Virgin Atlantic to create a groundbreaking partnership aimed at enhancing connectivity between India, Europe and North America. Under this collaboration, IndiGo will integrate its extensive domestic network with Delta's North American reach, Air France KLM's vast European routes and Virgin Atlantic's UK and transatlantic access. The partnership enables customers to book and travel on each other's flights such as KLM flights from Amsterdam to over 30 European destinations, Virgin Atlantic services from Manchester to North America and Delta flights from Amsterdam to the U.S. and Canada using IndiGo's '6E' code. This collective initiative, first unveiled at the IATA AGM in New Delhi, marks a major step toward seamless intercontinental travel and is expected to begin later this year.

DLL Analysis: This alliance represents a powerful example of strategic synergy in aviation. IndiGo harnesses its domestic dominance to springboard into long-haul markets without building an expensive global fleet, while its partners gain seamless access to India's booming aviation sector. The coordinated use of codeshare, wet-leased aircraft, and shared loyalty programmes showcases a mature, cost-efficient approach to international expansion. It also reflects a broader industry trend: airlines leveraging alliances to boost network flexibility, resilience, and customer experience amidst rising travel demand and competitive pressures.

Source: IndiGo Website

D. Key Judicial Precedents

a. Supreme Court stays Kerala HC order declaring cochin international airport as 'Public Authority' under RTI Act

August 26, 2025 – The Supreme Court of India has stayed the Kerala High Court's order that had declared Cochin International Airport Ltd ("CIAL") as a 'public authority' under the Right to Information ("RTI") Act, 2005. The stay was granted by a bench comprising Justices Vikram Nath and Sandeep Mehta, following submissions by Senior Advocate Mukul Rohatgi on behalf of CIAL. The matter is now listed for final hearing in January 2026. The legal dispute began in 2019 when the Kerala State Information Commission held that CIAL, due to government involvement and public functions, falls under the RTI Act. CIAL challenged the ruling, arguing that the Kerala government holds only 32.42% of its paid-up share capital and that the company is run independently by its Board of Directors.

However, both the Single Bench (in 2022) and the Division Bench (August 2025) of the Kerala High Court ruled that the state exercises "deep and pervasive control" over CIAL. The court cited factors such as government-backed loans, state acquisition and transfer of land and the historical establishment of CIAL's predecessor (Kochi International Airport Society) through a government order. The High Court had directed CIAL to comply with pending RTI applications. CIAL's appeal to the Supreme Court has now resulted in a temporary reprieve from this direction.

DLL Analysis: The Supreme Court's intervention temporarily halts the expansion of RTI coverage to CIAL, highlighting the complexities involved in determining the public character of government-linked private entities. The final verdict could set a significant precedent on the extent to which public funding, land acquisition and state-backed guarantees define a company's accountability under transparency laws.

Source: Live Law

b. Supreme Court dismisses PIL for exclusive safety audit of Air India

August 8, 2025- The Supreme Court dismissed a PIL seeking an independent probe into Air India's safety and maintenance procedures following the Ahmedabad plane crash that claimed 270 lives. The bench of Justices Surya Kant and Joymalya Bagchi allowed the petitioners to withdraw the plea, with liberty to approach appropriate authorities or file a writ at a later stage.

The PIL, filed by Narendra Kumar Goswami and Laxman Prasad Goswami, sought a committee led by a retired Supreme Court judge to examine Air India's practices, along with a comprehensive fleet audit by an ICAO-accredited agency, and improved safety reporting by DGCA. It also asked for a time-bound AAIB report on the crash and compensation for victims' families.

The Court questioned why only Air India was being targeted, noting that any regulatory mechanism should apply to all airlines. "Why only Air India?" Justice Kant asked, cautioning against giving the impression of a corporate rivalry. The petition was dismissed as withdrawn.

DLL Analysis: The Supreme Court's decision to dismiss the PIL reflects judicial restraint in matters better suited for regulatory or executive action, particularly where sector-wide implications exist

Source: Live Law

c. Delhi High Court upholds revocation of Celebi's security clearance, says natural justice must yield to national security

July 7, 2025- A Single Judge Bench of the Delhi High Court ("HC"), in a judgment dated July 7, 2025, dismissed the plea filed by Turkey-based Celebi Airport Services India Pvt. Ltd. ("Celebi") challenging the revocation of its security clearance by the Union Government. The Court held that while natural justice is a core constitutional principle, it must give way when compelling national security considerations are involved.

Justice Sachin Datta observed that based on the material placed before the Court, the action taken by the authorities was justified and rooted in legitimate security concerns, including potential risks of espionage and dual-use logistics. Relying on the Supreme Court's ruling in Madhyamam Broadcasting Ltd. v. Union of India, the HC reiterated that courts cannot second-guess executive assessments of national security and that judicial review in such cases is limited to verifying the existence of a rational nexus between the material and the government's conclusion.

The Court also emphasized that ground handling services provide deep access to sensitive airport infrastructure, elevating the importance of thorough security vetting. The HC recognized the validity of non-disclosure of sensitive inputs under public interest immunity and held that sealed cover submissions could be accepted in limited circumstances to protect national security. Accordingly, the Court dismissed Celebi's petition, holding that natural justice may be curtailed when outweighed by compelling threats to national security.

DLL Analysis: This decision reaffirms the judiciary's deference to the executive in matters of national security, particularly where commercial entities operate in sensitive infrastructure sectors. By prioritizing security over procedural fairness, the judgment sends a clear message that constitutional guarantees, including natural justice, are not absolute when national interest is at stake. It also provides judicial backing to state actions grounded in confidential intelligence, emphasizing the limited scope of review courts can exercise in such contexts.

Source: Celebi Airport Services India Private Limited v. Union of India & Ors., 2025 SCC OnLine Del 4755, Live Law

d. Delhi High Court dismisses another plea by Celebi against revocation of security clearance

July 31, 2025- A Single Judge Bench of the Delhi High Court ("HC"), in a judgment dated July 31, 2025, dismissed a petition filed by Celebi Ground Handling India Private Limited challenging the Central Government's decision to revoke its security clearance. Justice Tejas Karia held that the plea raised issues identical to those previously adjudicated by a coordinate bench and found no reason to depart from that decision.

Earlier, on July 7, 2025, a coordinate bench had dismissed similar petitions filed by Celebi Airport Services India Pvt. Ltd. and Celebi Delhi Cargo Terminal Management India Pvt. Ltd., upholding the revocation of security clearances based on national security concerns. That judgment emphasized that while natural justice is a constitutional value, it must yield in matters involving the security of the state.

Accordingly, the present petition was dismissed on the ground that it was squarely covered by the earlier ruling.

DLL Analysis: This dismissal reaffirms the Delhi High Court's earlier ruling on July 7, 2025, which upheld the government's decision to revoke Celebi's security clearance in light of compelling national security considerations. The court's consistent approach signals that procedural fairness must give way where credible threats to national security are identified, especially in sensitive sectors like civil aviation.

Source: Celebi Ground Handling India Private Limited v. Union of India, Live law

e. Bombay High Court vacates interim order restraining replacement of Celebi NAS at Mumbai Airport

July 23, 2025- A Single Judge Bench of the Bombay High Court ("HC"), in their judgment dated July 23, 2025, vacated interim protection granted to Celebi NAS Airport Services India (P) Ltd. ("Celebi NAS"), thereby permitting Mumbai International Airport Ltd. ("MIAL") to proceed with the final appointment of a new ground handling operator following the revocation of Celebi NAS's security clearance. The petition had been filed under Section 9 of the Arbitration and Conciliation Act, 1996 ("the Act") seeking interlocutory relief.

Celebi NAS, which held two Concession Agreements with MIAL for ground handling and bridge mounting services, had its security clearance revoked by the Bureau of Civil Aviation Security on May 15, 2025. This led to the suspension of its operations, and its personnel and equipment were transitioned to Indo Thai Airport Management Services (P) Ltd. Celebi NAS argued that premature replacement would cause irreparable harm and that it had no control over airport access or equipment post-clearance revocation.

Earlier, the HC had granted limited interim protection by allowing the tender process for a replacement to continue but restraining the final appointment until court re-opening. However, with the Delhi High Court's recent decision in Celebi Airport Services India (P) Ltd. v. Union of India, 2025 SCC OnLine Del 4755, which upheld the revocation of security clearance of Celebi's sister concern, the Bombay HC held that continuing interim relief was no longer tenable.

The Court emphasized that an arbitral tribunal would not be able to grant specific performance by cancelling the replacement operator's appointment, especially when a similar challenge had already failed in another High Court. Given the commercial nature of the contract and the statutory importance of security clearance, the Court held that the continuation of the interim relief would serve no useful legal purpose. Accordingly, the Court vacated its earlier interim order dated May 26, 2025, thereby allowing MIAL to proceed with finalizing a new operator. It encouraged both parties to explore conciliation or arbitration for any remaining disputes, and left open the possibility of seeking relief under Sections 9, 11, or 17 of the Act, as necessary.

DLL Analysis: The Bombay High Court's ruling reinforces that in regulated sectors like aviation, statutory clearances, especially those tied to national security, override private contractual claims. Once such clearance is revoked and judicially upheld, courts will not grant interim relief to preserve commercial interests. The judgment affirms that arbitration cannot compel performance of contracts rendered legally unenforceable, striking a balance between regulatory authority and contractual rights.

Source: Celebi NAS Airport Services India (P) Ltd. v. Mumbai International Airport Ltd., Commercial Arbitration Petition (L) No. 15961 of 2025, Live Law.

d. Supreme Court dismisses appeals by Kal Airways and Kalanithi Maran against SpiceJet

July 23, 2025- A division bench of the Supreme Court, in a judgment dated July 23, 2025, dismissed Special Leave Petitions ("SLPs") filed by Kal Airways and Kalanithi Maran ("Appellants/Petitioners") challenging a Delhi High Court ("HC") order that denied condonation of delay in filing and re-filing their appeals under Section 37 of the Arbitration and Conciliation Act, 1996. The appeals were related to an arbitration dispute with SpiceJet Limited concerning a share transfer agreement.

The HC had rejected the applications on the grounds that the Petitioners had been "fence sitting" and had "deliberately and willfully" concealed material facts, particularly their own appeal filings, while simultaneously contesting the appeals filed by SpiceJet. The court noted that while the delay in initial filing was 55 days, the delay in re-filing extended to 226 days, and the petitioners only moved to cure defects after their earlier SLPs were dismissed on July 26, 2024.

The SC rejected the Petitioners' plea to adopt a liberal approach, stating that the High Court's findings were well-reasoned and based on the conduct of the petitioners. The bench held that the Petitioners appeared to have waited for the outcome of the proceedings initiated by SpiceJet before pursuing their own appeals, which undermined their case for condonation. The Court concluded that there was no ground for interference under Article 136 of the Constitution and dismissed the SLPs, thereby upholding the HC's decision.

DLL Analysis: The SC's ruling reinforces the principle that procedural timelines in arbitration-related litigation must be strictly adhered to. It also sends a clear message that litigants cannot take undue advantage of the judicial process by selectively engaging in proceedings or withholding material information from the court. The dismissal marks a significant setback for Kal Airways and Kalanithi Maran in their long-standing legal battle with SpiceJet.

Source: Kal Airways Private Limited. V. SpiceJet Limited And Anr., SLP(C) No. 17270/2025

e. PIL Filed in Supreme Court to ground Air India's Boeing fleet after Ahmedabad Crash

June 24, 2025- Advocate Ajay Bansal has filed a PIL in the Supreme Court seeking immediate suspension of Air India's Boeing fleet after the tragic Air India crash near Ahmedabad on June 12, 2025 which killed over 270 people, until thorough safety audits are completed. The petition alleged that the airline has violated the Aircraft Act, 1934, the Aircraft Rules, 1937 and DGCA's civil aviation requirements. Ajay Bansal through PIL has demanded surprise inspections, public release of audit results, strict penalties for violations and guidelines for regular checks of aircraft systems.

DLL Analysis: The PIL filed in the Supreme Court calls attention to the failure of Air India to follow safety laws under the Aircraft Act, 1934, its corresponding rules and the civil aviation requirements issued by DGCA. The Court's involvement shows the importance of enforcing safety standards to protect passengers' right to life. This case stresses that regulatory bodies like the DGCA must carry out strict and regular inspections and that airlines must be held accountable for neglecting safety, to avoid such tragic accidents in the future.

Source- Live Law

f. Uttarakhand High Court takes suo motu notice of Kedar Helicopter crash

June 16, 2025: The Uttarakhand High Court has taken suo motu cognizance of recurring helicopter crashes during the Char Dham Yatra, following the June 15 Gaurikund crash that killed seven people. The court demanded an explanation from the state over repeated accidents, noting that at least one crash occurs annually, highlighting serious safety lapses.

In response, the state government has suspended all helicopter services of the concerned helicopter operator along with the operator's permit. The court emphasized the urgent need for a comprehensive policy on helicopter operations in the hazardous Himalayan terrain, citing rapidly changing weather and technical faults as recurring causes. The June 15 incident was the fifth crash or emergency landing on the Char Dham route in just 39 days.

DLL Analysis: The Uttarakhand High Court's suo motu action highlights the urgent need for stringent safety protocols in helicopter operations during the Char Dham Yatra. The recurring crashes underscore systemic lapses in risk management and regulatory oversight, pressing the state to implement comprehensive policies and increase their oversight in the sector.

Source: Times of India

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