After more than three years of legal challenges, India’s Supreme Court is likely to rule in mid-Apr-2014 in favour of the government’s ground handling policy which was first proposed in 2007.
Things can move slowly in India; but when they do move, the scope of change can often be transformative. Such would be the case with the country's ground handling industry. But it would not all be smooth sailing.
If the Court does rule to uphold the policy, the size and structure of India’s ground handling sector will be dramatically transformed - significantly increasing the size of the contestable market for third party handlers almost overnight. CAPA estimates the market will be worth USD1 billion annually within the next ten years.
Indian carriers currently self-handle the majority of their domestic and international operations. The primary customers of third party handlers in India are foreign airlines, who are not permitted to self-handle. This is supplemented by some under-the-wing activities for Indian carriers. CAPA estimates the third party handling market was worth around USD200-220 million in FY2013.
However, under the incoming policy Indian carriers will no longer be permitted to self-handle at the six metro airports or at Cochin, and will be required to appoint one of the licensed handlers at each airport for both terminal and ramp handling.
07/04/14 Centre for Aviation
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Things can move slowly in India; but when they do move, the scope of change can often be transformative. Such would be the case with the country's ground handling industry. But it would not all be smooth sailing.
If the Court does rule to uphold the policy, the size and structure of India’s ground handling sector will be dramatically transformed - significantly increasing the size of the contestable market for third party handlers almost overnight. CAPA estimates the market will be worth USD1 billion annually within the next ten years.
Indian carriers currently self-handle the majority of their domestic and international operations. The primary customers of third party handlers in India are foreign airlines, who are not permitted to self-handle. This is supplemented by some under-the-wing activities for Indian carriers. CAPA estimates the third party handling market was worth around USD200-220 million in FY2013.
However, under the incoming policy Indian carriers will no longer be permitted to self-handle at the six metro airports or at Cochin, and will be required to appoint one of the licensed handlers at each airport for both terminal and ramp handling.
07/04/14 Centre for Aviation
