Date:02/02/2007 URL: http://www.thehindubusinessline.com/2007/02/02/stories/2007020203461100.htm

Back Panel clears ground handling policy for 6 metro airports

Our Bureau

Only 3 agencies can take up services

Two basic parts
Ground handling work has two basic parts — passenger handling at the landside and ramp handling that includes loading and unloading of aircraft and aircraft handling.

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New Delhi Feb.1 THE Cabinet Committee on Security (CCS) has cleared a proposal to allow only three agencies to take up ground handling services at the six major metro airports.

Briefing newspersons, the Minister for Civil Aviation, Mr Praful Patel, said that the airport operator or a joint venture company, subsidiary companies of Air India or Indian airlines or their joint ventures or any other ground handling service provider selected through competitive bidding on a revenue sharing basis would only be allowed to offer ground handling services.

"After January 1, 2009, these three agencies will be allowed to carry out ground handling activities at the six major airports. A regulatory framework will be in place before that to ensure that best international practices are followed. These three agencies will ensure that there is enough competition to ensure competitive pricing as well as better services," the Minister said.

The six airports where the new rules will apply are Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore. At other airports the policy being followed at present would continue, the Minister added.

Ground handling work has two basic parts — passenger handling at the landside and ramp handling that includes loading and unloading of aircraft and aircraft handling.

No change in FDI policy

The Cabinet, however, did not make any changes in the foreign direct investment level to be allowed in ground handling or minimum paid-up capital that a company needs to have to be able to enter the sector. "We are yet to take a view on the larger issue of the FDI limits for the sector. As of now, there is no change in the existing FDI policy governing aviation," the Minister said.