Panel for opening ground handling

Chandra panel may allow self-handling by foreign carriers

The Naresh Chandra Committee, set up to chart a roadmap for the aviation sector, is likely to suggest that private players be allowed in ground handling, in the second part of its report.

The committee is also not opposed to self-handling by international airlines.

The Cabinet Committee on Security (CCS) in March 2003 had decided to bar private parties and foreign airlines from conducting ground handling services.

In the first part of its report, submitted to the ministry of civil aviation on December 8, the Chandra panel had recommended that the private domestic airlines "" Jet Airways and Air Sahara "" be permitted third-party handling, besides self-handling.

The ground handling issue will be addressed by the committee in its second report, likely to be submitted by February 2004.

Officials said the committee found that CCS' decision went against the privatisation process.

"Considering that metro airports are being privatised and two greenfield airports also being commissioned, the ground handling norms need to be liberal. All that needs to be put in place is a security clearance clause," the sources said.

The committee might also suggest the tightening of the existing regulations on ground handling and recommend that sub-contracting of the services by foreign airlines be barred.

The Rs 1,000-crore ground handling industry has been crying hoarse after the CCS ruling, which provided service rights only to Air-India, Indian Airlines and the Airports Authority of India.

It had said the three state-owned companies could form subsidiaries for the purpose. Jet and Sahara had lodged a strong protest with the ministry.