Cambata Aviation grounded as finances hit air pocket

Cambata Aviation, the country’s oldest private ground handler, has ceased operations in Mumbai and Delhi, leaving over a 1,000 employees in the lurch.

On August 9, the company’s chief operating officer, A P Casserly, wrote to employees not to report to work, after it lost all the airline ground handling contracts to rivals Celebi and Bird Worldwide Flight Service (BWFS). The letter was issued on the advice of Mumbai and Delhi airport operators, who viewed the presence of staff, without any duty, as security risk. Till recently, Cambata Aviation was handling around 10 airlines each in Mumbai and Delhi. All carriers have since assigned their ground handling contract to Celebi and BWFS. Cambata Aviation had not paid its employees for the past few months. Possible employee unrest is said to have prompted the ground handler to shift its contracts.

AIR GRIEVANCES

• Cambata Aviation, the country’s oldest private ground handler, has ceased operations in Mumbai and Delhi, leaving over a 1,000 employees in the lurch
• On August 9, the company’s COO, A P Casserly, wrote to employees not to report to work, after it lost all the airline ground handling contracts to rivals Celebi and BWF S

While the two rival companies have absorbed around 600 of Cambata’s employees, the firm still has over 1,000 employees. On Thursday, Cambata staff lodged a police complaint against Casserly, demanding outstanding salaries. The firm was set up in 1967 by Kershi Cambata. It began its operations by providing ground support services to British Overseas Airways Corporation and Swissair. Cambata’s sons Nelson and Albert remain its promoters.

Trouble started brewing in the past few years when the company started making losses due to competition, labour issues and increase in airport charges. It lost several clients to Celebi. Last year, Casserly was arrested and jailed for service tax default. The company’s bids to bring in new investment also fizzled out.

Casserly, however, maintains efforts are on to find an investor and that all employee dues will be settled “as soon as possible.” He said the firm will sell some of its equipment to settle dues.

“We have the licence to operate as a ground handler at Mumbai and Delhi airports; the licence is valid for four years. Constant efforts are on to bring an investor,” Casserly had stated.