Airport ground handling policy not cleared for take-off yet

Mumbai/New Delhi: The Civil Aviation Ministry has not yet taken a stand on the ground handling policy in terms of deferring its implementation date or even changing it completely.
The policy, which was put off for six months in January, is scheduled to be implemented from July 1.
According to sources, the Ministry is still considering the views put forth by airline companies at a meeting held between the two earlier this week. “We are examining all aspects for a smooth transition. It would be too early at this point to make any definitive statement on the date being put off beyond July 1,” Ministry sources told Business Line.
What is known now is that only Air India, the airport operator and a third private operator will be allowed to provide ground handling services once it comes into effect. The airlines are still not clear on issues relating to charges levied for using the facilities and other details on the policy. This has had most of them terribly worried.
“The Government must revisit the policy and have it withdrawn. Implementing it will lead to job losses and reduce the quality of service,” said Mr Sanjay Aggarwal, CEO, SpiceJet.
According to an industry source, the new policy would also mean an added cost burden for airlines which are not in the best of shape now. They would also have to incur losses on ground-handling equipment bought.
The airlines have no clue about what could happen to the current ground handling staff working with them. “There has been no indication if they will be absorbed by various stakeholders,” the source added.
04/6/09 BusinessLine

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Categories: Airports Jun 2009