Ground handling policy deferred again

The new airport ground handling policy, scheduled to come into effect from tomorrow, has been deferred once again, as airlines are not prepared to shift to the new system.

After meeting domestic airlines today, the civil aviation ministry gave them four weeks to select ground handlers.

“The airlines have been given up to four weeks’ time to select ground handlers, who will replace their staff at airports. This means if they sign a contract on April 15, the policy is implemented for them,” said a ministry official, who did not want to be identified.

Ground handling includes general administration, baggage, freight and mail handling, loading and unloading of aircraft and transport of crew, passengers and baggage, fuel and oil handling and catering services.

The policy aims at limiting the number of ground handlers to three at six major airports in the country — Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad. Now, all airlines have their own staff for ground handling at these airports.

Of the three ground handlers, one will be Air India-Singapore Airport Terminal Services and the other will be the airport operator, in alliance with a ground handling partner. The third handler will be chosen by competitive bidding.

The ministry had proposed to introduce the ground handling policy from 2007, but the implementation has been delayed due to resistance from airlines, who say their unique selling proposition will be compromised, if they give ground handling to others.

After being deferred twice, the policy was to be implemented from January 1, 2011. But the Delhi High Court stayed the implementation following a petition form airlines.

Meanwhile, airlines have filed a petition in the Supreme Court, seeking a stay on it. The apex court is likely to take up the petition on April 4.

Air India (AI) and the Airports Authority of India (AAI) would be the major beneficiaries of the new policy. Being the state-owned carrier, AI has the right to do ground handling at all Indian airports, while AAI will get additional revenue of at least Rs 350 crore each year, as the authorised ground-handling agencies nominated by it would start work at important airports like Chennai and Kolkata.