Clearing the air on the government’s ground-handling policy, approved by the Union Cabinet in 2009, Civil Aviation Minister Ajit Singh on Thursday told airline chiefs at a meeting here that air carriers could do their own ground handling in six metro cities too.
They could form their own subsidiaries and offer services to other airlines he added. The country’s air carriers were apprehensive that the 2009 policy would increase their expenses.
The meeting was attended by representatives of the airlines including Air India, Jet Airways, Spice Jet, Indigo and Go Air, airport operators and senior Government officials.
The airline representatives initially raised their apprehensions regarding problems they will face after implementation of the proposed policy in terms of increase in the cost of ground handling and adjustment of their employees engaged in ground handling operations.
They emphasized that the airlines be allowed self-handling at six metro airports also on the pattern of non-metro airports.
Shri Singh said that the new policy has been framed after approval of Cabinet Committee on security (CCS) with the prime objective to minimize safety and security risks.
This also aims at bringing economies of scale, ensure optimal utilization of personnel and equipment and bring standardization.
Allaying the fears of the airlines regarding monopoly of few ground handlers Shri Singh clarified that there can be as many ground handlers as can fulfill the conditions stipulated in this regard except airlines themselves.
The Minister said that even airlines can create their subsidiaries for the purpose of ground handling and these subsidiaries can participate in the process to become designated ground handler. However, he clarified that outsourcing of employees is not permitted due to security reasons.
He also called upon the airlines to motivate low cost ground handlers from across the world to come to India and participate in the Indian operations to bring competitiveness and cost effectiveness.
He also informed that the Ministry and Airports Authority of India (AAI) are looking into rationalization of royalty to be paid by ground handlers to airport operators including Airport Authority of India so that the cost of ground handling remains reasonable.
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