Financial Daily from THE HINDU group of publications
Thursday, Apr 03, 2003
Financial Daily from THE HINDU group of publications Thursday, Apr 03, 2003 |
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Airlines Logistics - Airlines Pvt airlines may continue ground handling activity Ashwini Phadnis
NEW DELHI, April 2 IN a move that could pave the way for the existing private sector airlines to continue doing their own ground-handling activities, the Ministry of Civil Aviation plans to seek clarification from the Ministry of Home Affairs on this issue. The Cabinet Committee on Security (CCS) at its recent meeting had stated that ground-handling activity in India would only be undertaken by three players - Air India, Indian Airlines and the Airports Authority of India (AAI) - from July 1. Official sources told Business Line that when the CCS took the decision the focus was on foreign operators only. "But now we plan to approach the Ministry of Home Affairs to get their opinion on whether the existing private sector scheduled airlines can be allowed to carry on doing their own ground-handling activity after July 1," official sources said. The move if approved could prove a boon for the existing private sector airlines Jet Airways and Air Sahara. While a rethink on allowing existing private sector airlines do their ground handling could take place, the Government is said to be disinclined to allow any joint venture between private airlines and public sector undertakings for ground-handling activities. Sources were categorical that only existing licensee private sector airlines will be allowed to do their own ground-handling activities. At present, AI and IA do ground handling work for several airlines and the boards of the two airlines have approved a proposal for the creation of a separate subsidiary. The IA board, at its recent meeting, approved the creation of a subsidiary which will enter in to joint ventures with private parties for investments required to upgrade infrastructure for the provision of international standards of handling for air services.
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