| Under a compromise formula that is being considered, the airlines might be allowed to manage the terminal side of the ground-handling services. |
| The back-end work in ground-handling would then be undertaken by Air India or AAI or by a third party. |
| Ground-handling at the back-end involves handling of the aircraft and requires specialised equipment, while the terminal side includes passenger and baggage handling. |
| The airlines have already petitioned the government to remove the restriction imposed on them as they feel this could impact the quality of their service. |
| "Their proposal is under consideration and we are studying the options. Till such time a decision is taken, the regulation stands," said a senior official in the ministry. |
| The new regulation is applicable to the upcoming airports like the ones in Bangalore, Hyderabad and Kochi. For the rest of the airports in the country, it will be enforced next year. |
| Following a bidding process, Air India, along with the Singapore Airport Terminal Services, has got the contract for ground-handling in Bangalore and Kochi. |
| The airlines want to keep at least the terminal-side of the ground-handling to themselves because this gives them a direct interface with passengers and helps them in creating a differentiation in terms of service. |
| They also point out that the ground-handling charges being offered by the new airports after the new policy are at least four to six times higher than what they fork out. This might force them to pass on the cost to the passengers. |
| The aviation boom has also made ground handling a lucrative business. Air India currently earns around Rs 600 crore from ground handling alone. |
| It plans to spin off the ground-handling strategic business unit (SBU) as a separate company later. |
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