India’s Ministry of Civil Aviation reportedly decided to allow private airlines to conduct their own ground handling at Indian airports for a further 12 months (until 31-Dec-2010) (DNA, 30-Dec-2009). The new ground handling policy, which permits only airport operators, Air India and specialised service providers selected through a bidding process to conduct ground handling, was passed by Cabinet on 29-Dec-2009, but its implementation deferred by 12 months, to allow the private airlines to transition from current arrangements. The implementation of the policy, first announced in 2007, has previously been deferred twice, from 01-Jan-2009 to 01-Jul-2009.
India defers new ground handling policy by 12 months
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India’s status as the fastest growing aviation market in the world creates tremendous opportunities. But risks are also heightened as the inadequacy of India’s infrastructure planning, a fast emerging shortage of skills, flawed policy initiatives, and weak regulatory oversight threaten to become major stumbling blocks. The potential is enormous; but unless government bites the bullet, it will be seriously constrained.
This report is a short extract from CAPA's comprehensive 200-page India Aviation Outlook Report FY2017/18, to be released in Feb-2017 at the CAPA India Aviation Summit. The Outlook includes CAPA's projections for traffic, capacity, yields and earnings and presents fleet induction plans, detailed operating and financial analysis and risk assessments of each Indian airline and airport operator. The report also includes analysis of policy and regulatory issues.