Government may defer implementation of ground handling policy

Mumbai: Buckling under pressure from airlines and airline employee unions, the civil aviation ministry may defer implementation of the new ground handling policy from January 1 next year by at least six months, sources said.
The new policy disallows private domestic carriers to handle passengers, ramp and aircraft. Instead, it has assigned three specialised agencies to undertake this business.
Fourteen employee unions of the flag carrier, Air India, have strongly opposed the move, despite National Aviation Company Ltd (NACIL) being a part of the new policy on ground handling. The unions feel the move will eventually lead to privatisation.
“A formal announcement to this effect will be made by the ministry by mid-December,” said a top source. The airlines have been resisting the move to part with ground handling services over the issues of service differentiation and employee retrenchment.
Industry estimates suggest that at least 8,000 employees stand to lose jobs if the new policy comes into effect. This number does not include the partial job-loss which the unions of NACIL say will happen when the ground handling special business unit of Air India is spun off into a separate company in a joint venture with the Singapore Airport Terminal Services (SATS).
03/12/08 Manisha Singhal/Business Standard

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Categories: Airports Dec 2008