Ajit Singh clears air over the existing Ground Handling policy

Clearing the air over the existing Ground Handling policy approved by cabinet in 2009, Ajit Singh, the civil aviation minister, made it clear to the airline bosses today that they can do their ground handling on their own in six metros. The airlines can form their own subsidiaries and they can offer services to other airlines also.

The airlines had confusion over the existing spelt out Ground Handling policy of 2009, said a senior official from the minister.

According to a statement issued by the ministry, “The airline representatives initially raised their apprehensions regarding problems they will face after implementation of the proposed policy in terms of increase in the cost of ground handling and adjustment of their employees engaged in ground handling operations. They emphasized that the airlines be allowed self-handling at six metro airports also on the pattern of non-metro airports.”

Ajit Singh, the civil aviation minister told Business standard, “ At the air side (runway, tarmac), airlines are already allowed self-handling and can create their subsidiaries for the purpose of ground handling. These subsidiaries can participate in the process to become designated ground handler. "

The existing ground handling policy states: In six metros, ground handling can be done by: (a) the airport operator itself or its Joint Venture partner (b) Subsidiary companies of the National Carrier or its Joint Venture specialized in ground handling services (c) any other ground handling service providers selected through competitive bidding on revenue sharing by the airport operator.

Singh added, " The meeting with the airlines was a clarification over the already stated Ground Handling policy.We have formed a committee and it will look into rationalization of royalty to be paid by ground handlers to airport operators including Airport Authority of India so that the cost of ground handling remains reasonable."

Singh also emphasized on the security issue in outsourcing the Ground handling to the labour at cheaper rates.

A senior civil aviation ministry official also confirmed to Business standard, “At air side (run way, tarmac etc) of the airport where security is a main concern, the subsidiaries of airlines should have employees on their roll in contrast to the situation right now, when most of the airlines are doing self-handling by outsourcing this work and hiring labour at cheaper rates.The outsourcing of employees is not permitted due to security reasons.”

By and large, airlines are hiring staff at cheaper rates and doing that in name of self-handling. It compromises with the security. We can’t be silent spectators to this, the official added.

Email sent to Jet airways was not answered. Spicejet also did not respond to this development.

The ministry sources confirmed that the representatives of the airlines deeply appreciated the effort by the Minister to clarify the policy issues and taking initiative for resolving the problems of ground handling.

The Ground Handling policy approved by the 2007 had prohibited airlines to do self handling at the air side. This policy was tweaked in 2009.

Jet airways, Spicejet and Indi Go had opposed the policy, saying it will make operations more expensive. The domestic airline operators filed petition in the High Court of Delhi in November 2010 challenging the new regulations. The Court dismissed the Writ Petition in March 2011. Thereafter, an SLP was filed in the Supreme Court challenging the Order of Delhi High Court. The matter is scheduled to be heard in the Supreme Court on  November 6, 2012.