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Our Bureau

New Delhi, March 21 Airlines will be allowed to do their own ground handling activity at the new Hyderabad airport till the end of the year.

This was decided after prolonged negotiations that various airlines using the new Hyderabad airport had with Air India and Singapore Air Transport Services and Menzies and Bobba Aviation – the two agencies allowed to carry out ground handling work there.

The protests from airlines against the high cost of ground handling services saw the airport opening being pushed back by a week to March 23. Officials are silent on whether airlines doing their own ground handling work at the new airport will have to pay 11 per cent of the total cost to the airport operator.

At Begumpet airport, Airports Authority of India (AAI) allows airlines to do their own ground handling services as long as they pay 11 per cent of the total costs incurred to the state-owned airport operator.

The airlines using Begumpet airport also have to bear the 12.36 per cent service tax that is levied on the ground handling activity.

“The important thing is to get the new airport started. Nine months, for which the airlines will be allowed to carry out their own ground handling activity at Hyderabad, is a short time in the 60 years concession agreement that has been awarded for the airport,” said a senior official of the Hyderabad International Airport Ltd.

At the moment, three domestic airlines and some international airlines have tied up with AI-SATS to take up the ground handling services.

Despite the assurances of the airport developers, some airlines have drawn up contingency plans just in case the airport opening is delayed again.

The contingency plan includes putting up a news alert on the airline Web site, sending out emails and calling passengers apart from sending fax messages to travel agents in case the opening is called off at the last moment.

Last week when the opening was suddenly called off an international airline had to make more than 500 calls to ensure that the passengers went to Begumpet airport instead of the new airport.

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Airlines allowed to do ground handling at Hyderabad airport

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