Govt denies pvt airlines' ground-handling demand

Domestic private carriers will not be allowed to undertake ground-handling services of other carriers at airports.

The country's private airlines have shown an interest in tapping the revenue potential in ground handling and want the government to open up the sector. Many of these have lined up plans to set up separate ground-handling companies for this purpose.

According to the central government's plans, airport operators, subsidiaries of state-run carriers or their ground-handling subsidiaries and specific agencies set up for the purpose will be allowed to undertake the activity.

Policy changes to this effect will be part of the proposed civil aviation policy, due to be announced in a month's time.

At present in India, Indian Airlines and Air India undertake ground-handling services for other carriers apart from handling their own requirements. Carriers like Jet Airways and Air Sahara take care of their own ground-handling requirements.

This move from the government comes at a time, when it is embarking on a plan to privatise the country's airports. Aviation ministry sources say additional services like this will be imperative to generate interest in the privatisation process of airports.

Officials say allowing airports to handle ground requirements of airlines will open up a new revenue stream for airport operators. It is estimated that ground-handling services at major airports can generate about Rs 300 crore to Rs 400 crore revenue.

These services include maintaining an aircraft while it is at the airport, manning the check-in and baggage counters and baggage services. On-ground services like passenger ferrying at airports are also included in this.

In countries like France and the UK, airports are allowed to undertake ground-handling services. It is estimated that about 30 to 40 per cent of an airport's revenue comes from services like ground handling.