Delay likely in new ground handling rules

The civil aviation ministry is planning to delay the implementation of the new ground handling norms to October instead of the earlier schedule of July 1. 

Senior ministry officials said the delay was caused by the recent two week Air India strike because of which the ministry officials were kept busy and were unable to begin work on the subject.

They said the new ground handling rules would therefore be put in place only in a staggered manner and the whole process would be completed only by December.

The officials said they were planning to implement the new norms first in the Mumbai and Delhi airports, followed by the international airports and only then extend them to the domestic airports.

The decision not to put into effect the new regulations in all the airports simultaneously was because this would have resulted in a massive loss of jobs, sources said.

Industry sources said that due to the new norms at least 25,000-30,000 people in the public sector would lose their jobs.

The cabinet committee on security on the civil aviation ministry's recommendations had taken a decision in March this year to allow only the subsidiaries of Air-India, Indian Airlines and Airports Authority of India to do ground handling in the international and domestic airports.

The civil aviation minister Shanawaz Hussain had said that the decision was taken on security grounds keeping in mind the September 11 incidents.

The government decision therefore disallowed self handling by international and domestic airlines as well as private agencies from carrying on ground handling services.

The CCS instead instructed A-I, IA and AAI to create subsidiaries where up to 40 per cent private participation would be allowed. The three government companies would get 10 per cent of the total turnover of the subsidiaries. 

According to industry estimates  the total ground handling services in the country was valued at about Rs 1,000 crore (Rs 10 billion).

The civil aviation ministry had also sent a proposal to the home ministry after the CCS decision, asking  for permission to allow the two private domestic carriers, Jet  Airways and Air Sahara, to be allowed to do self handling. But this proposal has been turned down by the home ministry.