The central government has decided to support air passengers in a legal battle against the operators of Delhi and Mumbai airports, concerning a ₹50,000 crore claim that could significantly raise airfares. The case, which has reached the Supreme Court, revolves around the "hypothetical regulatory asset base (HRAB)" for the first two years of these airports under the Public Private Partnership (PPP) era, which began approximately 20 years ago.

The dispute originated between the airport operators, DIAL and MIAL, and the Airports Economic Regulatory Authority of India (AERA). Following a protracted legal battle and a recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) judgment, the Delhi and Mumbai airport operators have challenged the tribunal's order in the Supreme Court, contesting the striking down of their ₹50,000 crore HRAB claim. The Supreme Court is scheduled to hear the matter on December 3rd.

Government officials have stated that the Aviation Ministry will support AERA in this case due to the potential impact on airfares for travelers. If the private operators of Delhi and Mumbai airports win the case, they could be due approximately ₹50,000 crore, potentially leading to a significant increase in user development fees (UDF) paid by passengers, as well as higher landing and parking charges for airlines, which would then be factored into airfares. The government anticipates that the overall financial burden on passengers could increase substantially.

According to estimates from the Civil Aviation Ministry, the domestic UDF at Delhi airport could increase nearly tenfold, from ₹129 to ₹1,261. In Mumbai, the increase could be even more drastic, potentially rising twenty-two times from ₹175 to ₹3,856.

In early 2006, the Delhi and Mumbai airports were handed over to private players for development under the PPP model. Prior to this, the state-run Airports Authority of India (AAI) managed these airports.