Pvt carriers up in arms over ground handling

New Delhi: Private carriers are up in arms against the government’s decision not to allow them to undertake their own ground handling under a new policy that is awaiting Cabinet approval.
They say this would increase the cost of ground handling four to seven times, depending on the airport, and that this additional cost will have to be passed on to customers.
Under the proposed new policy, only the national carrier, ground handling companies and airport operators can offer these services. Currently, Jet Airways, SpiceJet and GoAir are among the major airlines that look after their ground-handling at many airports.
The new policy, once approved, will be applicable immediately at new airports like Hyderabad and Bangalore which will be operational next year. In other cities, the policy will be implemented after January 1, 2009.
GMR Hyderabad International Airport Limited (GHIAL), which is developing the Rajiv Gandhi International Airport in Shamshabad, has awarded seven-year ground-handling contracts for third-party airlines to two consortia: Menzies and Bobba and the combine of Singapore Air Terminal Services (SATS), Indian Airlines and Air India.
Bangalore airport has given its ground-handling contract to two consortia — Air India and SATS and GlobeGround India.
Carriers say the government, in its attempt to ensure that airports make money, are forcing them to outsource ground-handling services, which account for 3-4 per cent of costs.
28/07/07 Anirban Chowdhury/Business Standard

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Categories: Air India Jul 2007, Airports Jul 2007, General Aviation Jul 2007