Loading

India Ministry of Civil Aviation: Civil Aviation Minister Shri Ajit Singh Meets Airline Representati

Direct News Source

25-Oct-2012 India Ministry of Civil Aviation: Civil Aviation Minister Shri Ajit Singh Meets Airline Representatives; Addresses their Concerns About New Ground Handling Policy

Union Minister of Civil Aviation Shri Ajit Singh today met the representatives of various Indian airlines to address their apprehensions about the new policy of the Government on ground handling of flights at Indian airports which was to be implemented with effect from 31.12.2010. The meeting was attended by representatives of the airlines including Air India, Jet Airways, Spice Jet, Indigo and Go Air, airport operators and senior Government officials.

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.

Shri Singh said that the new policy has been framed after approval of Cabinet Committee on security (CCS) with the prime objective to minimize safety and security risks. This also aims at bringing economies of scale, ensure optimal utilization of personnel and equipment and bring standardization. Allaying the fears of the airlines regarding monopoly of few ground handlers Shri Singh clarified that there can be as many ground handlers as can fulfill the conditions stipulated in this regard except airlines themselves. The Minister said that even airlines can create their subsidiaries for the purpose of ground handling and these subsidiaries can participate in the process to become designated ground handler. However, he clarified that outsourcing of employees is not permitted due to security reasons. He also called upon the airlines to motivate low cost ground handlers from across the world to come to India and participate in the Indian operations to bring competitiveness and cost effectiveness. He also informed that the Ministry and Airports Authority of India (AAI) are looking 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.

Indian carriers also brought to the notice of the Minister the monopolistic attitude of Cochin Airport wherein airport does not allow airlines to do their self-ground handling though the airport is a non-metro airport and as per ground handling policy the airlines are allowed to do self-ground handling. Shri Singh assured that it would be ensured that all airports compulsorily stick to ground handling policy of the Government.

It was also decided during the meeting that a committee headed by the Joint Secretary in the Ministry of Civil Aviation Shri Alok Sinha will be constituted which will draw detailed guidelines on ground handling after consultation with airlines.

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. They observed that the initiative has paved the way for resolution of long pending conflict between the Ministry and the airlines for which airlines had gone to the Court to seek the relief. The matter is scheduled to be heard in the Supreme Court on 6th November, 2012.

The following is the brief on new ground handling policy:

The new ground handling policy was approved by the Cabinet Committee on Security (CCS) in 2007. The ground handling services had to be provided through entitled entities only and non-entitled entities were to exit w.e.f. 01-01-2009 with the date later extended to 31-12-2010.

As per the new policy the following entities became eligible to undertake ground handling services at airports:-

(1) All Metro Airports located at Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad:

(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.

A minimum of two ground handling service providers would be authorized at these airports in addition to the subsidiaries of National Carrier.

(2) At all other airports:

in addition to the entities mentioned above, the airline operators except the foreign airlines were permitted to undertake self-handling.

The airlines complained against the new policy arguing that it will lead to retrenchment of large number of personnel, there will be no alternate use of assets already in place etc. After taking into consideration views of all stake holders, a CCS note was submitted and the competent authority approved that:-

(i) All private airlines, including foreign airlines, may undertake self handling in respect of "passenger and baggage handling activities at the airport terminals" and "traffic service including the passenger check-in", which require passenger interface, at all airports.

(ii) All cargo airlines, which have their own cargo aircrafts, may undertake self handling in their hub airports.

(iii) The time limit for exit of non-entitled entities be extended beyond 31-12-2009 up to 31-12-2010; and

(iv) Foreign airlines and private independent ground handling service providers not be permitted self ground handling/ground handling at joint user Defence airfields.

While the Ministry was taking steps to implement the policy, 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.