New Ground Handling policy being formulated

The civil aviation ministry is giving final touches to the ground handling policy, which seeks to usher in healthy competition at Indian airports among support service providers. The policy will allow domestic private players as well as foreign companies to undertake ground-handling services at various airports across India. A Cabinet note to this effect has been drafted and it is likely to be sent to the Union Cabinet for approval next month. In order to avoid monopoly, the new policy will try to ensure that two or more players undertake ground handling functions at all airports, a civil aviation ministry official said. The policy will also allow 100% FDI in such functions. The proposed policy is likely to create competition for state-owned carriers Air-India and Indian, which have a strong presence in the ground handling segment now. As ground handling functions are sensitive from the security point of view, the policy on these is being devised after consultations with various ministries such as home and external affairs.

Ground handling work consists of two parts: Passenger handling at the city side of the airport; and aircraft handling as well as ramp handling at the air side. The latter segment includes loading and unloading of aircraft, cleaning, fuelling and push-back facilities. The home ministry had earlier suggested the creation of an independent agency for ground handling operations consisting of people from Directorate General of Civil Aviation (DGCA), Bureau of Civil Aviation Security (BCAS), Central Industrial Security Force (CISF) and AAI. However, the civil aviation has favoured competition from private players to ensure quality service for airlines. “Apart from creating a competitive environment, service by more players will also ensure faster passenger and baggage clearance,” said a seniors official of the civil aviation ministry. The annual revenue from ground handling operations is about Rs 1,000 crore at present and is expected to grow rapidly. Private players are expected to take a plunge into this lucrative segment in a big way once it is opened up.

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