No freeway for pvt carriers in airport services

Private carriers will not be allowed to deliver ground handling services to other carriers at airports.

As per the government's plans, only airport operators, subsidiaries of state-run carriers, or their ground handling subsidiaries, and agencies set up for the specific purpose will be allowed to deliver these services.

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

Private airlines have shown interest in tapping the revenue potential in ground handling, and want the government to open up the sector. Many carriers have even lined up plans to set up separate ground handling companies for the purpose.

At present, Indian Airlines and Air India deliver ground handling services to other carriers, apart from handling their own needs. Carriers like Jet Airways and Air Sahara manage ground handling on their own.

The move comes at a time when the government is embarking on a plan to privatise the country's airports. Aviation ministry sources said additional services like ground handling would be crucial for generating interest in the privatisation process.

Senior civil aviation ministry officials said allowing airport operators to deliver ground handling services to airlines would open up a new revenue stream for them. It is estimated that these services at major airports can generate about Rs 300-400 crore in revenues.

These include maintenance of aircraft at the airport and manning the check-in and baggage counters, as well as providing baggage services. Ferrying of passengers at airports also constitutes a part of these services.

In countries like France and the UK, airports are allowed to take up ground handling services.

It is estimated that, typically, about 30 to 40 per cent of the revenue of an airport can be generated from such non-aeronautical services.