Seizure of Air India and AAI Dues by Canadian Courts

Seizure of Air India and AAI Dues by Canadian Courts

A Canadian court has ordered the International Air Transport Association (IATA) to seize funds received in favor of Air India and the Airports Authority of India (AAI). The Superior Court of Quebec issued two different decisions on November 24 and December 21 demonstrating that the IATA has confiscated assets belonging to the AAI valued at approximately $6.8 million. The absolute cost of the Air India assets seized was not immediately available. The order resulted in the seizure of approximately $6.8 million belonging to the Airport Authority of India. The actual sum owed to Air India that has been delayed as a result of the ruling is unknown. Three shareholders of Devas which won a $111 million arbitration award against the government filed an action request with the Superior Court of Quebec, and sequestration orders were granted based on their requests. Airport navigational services (route navigation, terminal navigational, and landing charges) brought in Rs 3592 crore in FY 19-20, accounting for roughly 28% of AAI's earnings. With Air India, ticket prices are handled by global distribution systems (GDS) such as Amadeus or Travel port. As per Standard, GDS accounts for almost half of its earnings, which is subsequently connected to IATA's billing and payment scheme. Air India responded to the asset seizure ruling by deleting all of its ticket portfolios from GDS. AAI claims it will file a legal challenge to the Canadian court's decision. "The AAI is still not served with any order in this issue by the Quebec Court of Canada." Nonetheless, at the desire of the AAI, the IATA supplied some papers to halt the transfer of money obtained on the AAI's behalf. The Airports Authority is pursuing legal action to defend itself, according to a statement. Following the granting of the court judgment in Canada, Air India reportedly deleted its airline inventories from the global distribution system linked to the IATA. This might explain why Air India tickets were suddenly unavailable on platforms like Amadeus, Travel Port, and others used by travel agents during the recent holiday season.