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CITCO couldn’t cash on travellers: Airport authority

CHANDIGARH: The court of Civil Judge (Junior Division), Simran Singh, granted a four-day stay (till August 14) to the Chandigarh Industrial and Tourism Development Corporation Limited (CITCO), after a civil suit was filed by the CITCO against the orders to vacate the domestic lounge of the Chandigarh International Airport by the Chandigarh International Airport Limited (CHIAL) on August 7.

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Naina Mishra
Tribune News Service
Chandigarh, August 9

The court of Civil Judge (Junior Division), Simran Singh, granted a four-day stay (till August 14) to the Chandigarh Industrial and Tourism Development Corporation Limited (CITCO), after a civil suit was filed by the CITCO against the orders to vacate the domestic lounge of the Chandigarh International Airport by the Chandigarh International Airport Limited (CHIAL) on August 7.

In its reply to the court, the CHIAL rubbished the CITCO’s claims of surrendering the international lounge due to less footfall by countering that the footfall has increased rapidly at the airport.

The CHIAL submitted that the footfall was 1.83 mn in 2016-17, 2.13 mn in 2017-18 and 2.09 mn in 2018-19. The reply stated, “It is incorrect on the part of the CITCO to say that the passengers are less as the airport caters to tourists/travellers coming from Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana and Chandigarh.”

After the Punjab and Haryana High Court gave directions to the Airports Authority of India (AAI) to get in touch with the CITCO, for setting up of lounges to facilitate passengers at Chandigarh Airport on September 2, 2016, two executive lounges (International and Domestic) were allotted to the CITCO.

The CITCO had surrendered the international lounge on the grounds that the terminal functions for less than five hours daily and only two flights operate from international terminal and that too on the alternate days. As a result, the visitors were less and sales negligible. The CITCO had also requested the CHIAL to give rebate in licence fee/rental.

The CHIAL contended that it was the fault of the company for not been able to cope up even after increase in footfall. “…there are three kinds of clients who visit Executive Lounge – walk-in passengers, premium credit card holders and business class travellers. The travellers utilise the services of the lounge extensively and if the CITCO has not been able to cash on them, the fault lies at the door of the plaintiff.”

Both lounges allotted as single unit to CITCO

In the petition, the CITCO pointed out that there was never any understanding that the domestic lounge was allotted on the condition that the international lounge has to be operated simultaneously.

“…both the lounges were allotted to the CITCO as a single unit. It is due to losses, they themselves have terminated the allotment of one lounge unilaterally. Now, they cannot be permitted to seek injunction for part performance of the allotment letter,” read the reply by the CHIAL.

The CHIAL has also sought compensation for damages incurred from the last seven months due to non-operation of the international lounge.

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