Indian aviation sector under debate of ground handling

The Indian aviation sector is facing turbulent times, even on the ground. While both foreign and domestic ground handlers are making plans to enter Indian airports, airlines still want to be in control.
Already grounded by rising fuel prices and mounting losses, airlines in India are now embroiled in a new debate - ground handling. While the airlines insist on being service providers at airports, airport developers and the ministry of civil aviation hold a different view. The recent tiff between Bengaluru International Airport (BIA) and other airlines over the ground handling norms has also added fuel to the fire and left the ground handlers in a lurch.
According to industry sources, as of now, there are around 25 ground handlers - both national and international companies - which have expressed interest in handling ground services in more than 40 airports, which fall under the recent airport modernisation process. An Ernst & Young report estimates the total ground handling market in India at Rs 30 billion. The ground handling companies believe that with more airports becoming functional, there will be enough space for all players to compete and thrive.
08/06/08 Dheeraj Tiwari & Raja Awasthi/Economic Times

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Categories: Airports Jun 2008