Ground-handling rules to take effect from Jan 1

Government says minor changes possible.

After deferring implementation of the new airport ground handling policy twice, the government has said it will be done from January 1, the latest stipulated schedule since last December’s announcement. Ground handling includes passenger check-in, baggage screening and refuelling of aircraft.

The policy aims at limiting ground-handling operations of only three players. These being state-owned National Aviation Company Ltd, the airport operator (Airports Authority of India or private airport operators) and a private agency selected through competitive bidding. This is to be implemented at six metro airports — Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad.

“We will implement the policy (ground handling) on January 1, 2010. We are ready to modify the policy a bit to implement the scheme,” said a senior ministry official.

The ministry had called a meeting on Tuesday of the stakeholders — airlines and airport operators — to look into the issues raised by both parties.

The ministry will go through all the issues raised and will forward it for clearance in 15 days, said a senior ministry official. He also added the draft may be slightly modified. The airlines may be allowed to handle operations inside the airport and the agent would handle the outside operations. The operations inside the airport are 20 per cent of the total ground handling. However, airlines are averse to this kind of arrangement.

The draft needs the approval of the Cabinet Committee on Security.

In the meeting, the airlines said the policy will increase their cost, make them retrench 8,000 people involved in ground handling and write off investments of around Rs 400-500 crore in equipment. And that they cannot be sure of the services provided by these agents.

In its reply, Delhi International Airport Ltd (DIAL) said that the ground handling charges are going to be comparable/lower than those currently incurred by domestic airlines.

The new ground handlers will buy equipment less than three years old and meet standards and have also agreed to meet their entire requirement of blue-collar employees from the existing manpower of ground handlers/airlines.

It has also decided, it said, to forgo the revenue share of 13 per cent on domestic ground handling in the new arrangement.