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Ashwini Phadnis

NEW DELHI, May 12

INTERNATIONAL airlines operating in India and managing their own ground handling at present can breathe easy for a while longer. The Government is all set to extend the July 1 deadline for all ground handling work at airports to be carried out only by Air India, Indian Airlines and the Airports Authority of India (AAI).

The new thinking in the Government on the issue is to go "step-by-step" and follow a "staggered" approach for the three State-owned agencies to take up all ground handling work at various international airports.

The phased induction of ground handling by the State agencies at the major international airports is now likely to start from October and be completed by December this year.

The first phase, which is likely to start in October instead of July 1, is to see the ground handling work only at Delhi and Mumbai airports being handled by the three State-owned enterprises.

Thereafter, ground handling work at the other "major" international airports will also be taken over by the three State agencies in such a fashion that there is no disruption of work and the Government decision is implemented by January 1, 2004, official sources indicated.

Citing security concerns, the Cabinet Committee on Security had, earlier this year, decided that all ground handling work at Indian airports be handled by either AI, IA or AAI from July 1. AI, IA and AAI are to form separate companies to carry out ground handling activities and are to hold a minimum of 51 per cent shareholding either directly or through their subsidiaries in a joint venture with an international operator or foreign airline. Sources said there were several reasons for a delay in implementing the original decision of the CCS, including the fact that the agitation by a section of AI pilots meant that the airline could not focus its attention to creation of a subsidiary to look after ground handling.

However, AI has now registered a subsidiary for ground handling and is in talks with a number of companies, including a Singapore Airlines subsidiary, Singapore Airport Terminal Services (SATS), for a possible tie-up.

Relief for Jet, Sahara staff

THE employees of Jet Airways and Air Sahara who earlier faced a bleak future, had the decision of the Cabinet Committee on Security (CCS) on ground handling been implemented from July 1, can now take heart.

The Government is now also looking at ways to ensure that the domestic airlines are not too badly affected by the decision of the CCS. Had the initial decision of the CCS been implemented in toto, it would have led to many people in both Air Sahara and Jet Airways losing their jobs as all ground handling work was to have been done by the three State-owned agencies.

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

However, official sources told Business Line that the Government was looking at ways to get out of the imbroglio in such a fashion that the "interest of the workers was protected while addressing issues of security."

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Status quo in airport ground handling work till October

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