Saturday, August 10, 2019

Court stays notice to Citco over vacating domestic lounge at airport

Chandigarh: The Chandigarh district court has put stay of four days on the termination notice issued by Chandigarh International Airport Limited (CHIAL) to Chandigarh Industrial and Tourism Development Corporation (Citco) to vacate the domestic lounge premises by August 10.
This decision of CHIAL was challanged by Citco in a district court whereby it was demanded that directions should be issued to set aside CHIAL notice. The matter would come up for hearing on August 14.

In September 2016, the high court had directed the Airport Authority of India (AAI) to approach Citco for setting up lounges at the Chandigarh airport. It was stated that Citco would operate executive lounges at international and domestic terminals and commercial rates were charged for allotted areas as licence fee. But later it was found that passengers don’t have time to visit the lounges as there is no stopover of flights at the airport and hence it was prayed to allot the internal and domestic lounges on long-term lease on rental basis. The CHIAL in November 2017 extended the allotment of executive lounges to Citco for five years till 2021. No rebate was given but licence fees was increased by 10%.

Running into losses, Citco decided to shut its lounge for international travellers after giving a 30-day notice to the authorities. However, the other outlet for domestic travellers continued to operate.

On July 2, CHIAL issued a notice for termination of space allotted for domestic lounge to Citco on ground that latter had not fulfilled the conditions of the licence including the termination of licence qua international lounge and Citco was directed to vacate the domestic lounge by August 10.
10/08/19 Neha Sharma/Times of India

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