Wednesday, January 31, 2007

FDI in ground-handling may go up to 74%

New Delhi: The Centre is planning to increase the foreign direct investment in ground handling operations from the current 49% to 74% in the Rs 1000 crore ground handling industry. The ground handling industry has been growing at over 25% annually for the last two years, owing to the massive increment in the passenger as well as the cargo traffic, both domestic and international. Major Indian companies which provide ground-handling services comprise Indian Airlines, Air India, and Cambata Aviation, while the international companies active on this front are Swissport International, Menzies Aviation, and Singapore Air Terminal Services (SATS).
Companies like Punj Lloyd Ltd are also entering the business. It has entered into a joint venture with Swissport International, a world leader in the ground handling industry. German Airline Lufthansa too has been eyeing the Indian ground handling segment.
Companies like Celebi, a Turkish ground handling major has also shown interest.
31/01/07 Atreyee Dev Roy/Financial Express