CCI by its order dated November 17, 2015 dismissed a case against DIAL for alleged abuse of its dominant position by charging high rentals for office space from some of the airlines. The case was filed by the Airline Operators Committee (AOC).
DIAL is the company responsible for operation and management of India Gandhi International Airport, New Delhi. AOC is established for facilitating the movement and handling of passengers, baggage, cargo, mail, etc. for the airlines operating at Indira Gandhi International Airport, New Delhi.
AOC alleged the increase in the office rentals to be arbitrary, unreasonable, exorbitant and discriminatory without there being any consultation or discussion with the concerned stakeholders.
The CCI, considering the relevant market as ‘the provision of office space to the airlines for non- aeronautical services at T3, IGIA, New Delhi', noted that DIAL was in a dominant position to provide services at Indira Gandhi International Airport. AOC had alleged that the increase of license fee to more than 100% was arbitrary and should have been to 7.5% as per the terms & conditions. However, the CCI noted that the increase of 7.5% was only during the subsistence of the agreement on annual basis.
The CCI stated that a mere increase in rental for the fresh term of the agreement cannot be viewed as per se unfair, particularly when license fee appeared to be rationalized in a uniform manner.
(Source: CCI Order dated November 17, 2015.For full text see CCI website)