Airlines cry foul as AAI races to meet ground handling policy deadline

Aso,with airlines reducing capacity,there will be a smaller ground handling pie to share with others. Similarly,private airport operators like those in Delhi and Mumbai have also selected ground handlers based on lowest bids and tough quality standards.

However,some sticky issues remain. Airlines contend that they should be allowed to undertake self-handling at these metropolitan airports as it works out to be more economical.

A senior executive of a leading low-cost carrier told The Indian Express that the turnaround cost of a single aircraft costs the company around Rs 4,000-Rs 5,000. “This cost will significantly go up if the company were to engage any of the mandatory ground handlers at the airport,” said the executive.

The Federation of Indian Airlines (FIA),representative body of all domestic airlines,would be sending a representation to the civil aviation ministry opposing the proposed implementation,said a member airline official. The joint venture between national carrier Air India and Singapore Airlines’ ground handling firm,SATS,is yet to take off,despite union cabinet clearances.

The fear of private airlines does not seem to be totally out of place. Information accessed from one of the private airport operators revealed that the ground handling company selected by it would charge Rs 8,500 per turnaround that includes ramp handling and terminal handling costs,for a domestic flight.

For an international flight,the turnaround cost would be around Rs 73,500. This ceiling rate will remain in effect till March 31,2012. “The ground handlers have assured us that they would buy the airlines’ ground handling equipment and absorb the outsourced workforce,” said a private airport operator official.

The ground handling policy,notified by the government in February 2007,sought to do away with the prevailing practice and bind airlines to choose from three agencies — the airport operator,Air India or an independent private ground-handling firm chosen by the airport — for the ground handling services.

The airport operators and state-owned Air India can provide the services on their own or through a joint venture with another ground-handling agency.