Tuesday, May 02, 2006

Pvt airlines may get into ground handling

New Delhi: The government is likely to allow domestic private airlines to undertake ground handling services of other carriers. This will open new revenue streams for the airlines.
At present, only the two national carriers offer third party ground handling services, while private carriers are allowed to undertake ground handling of only their own fleet.
However, the government had allowed a private consortium — Combatta — to undertake ground handling services at certain airports.
Ground handling services offer a huge business potential for carriers with the recent boom in the aviation sector. The logic is that setting up separate ground handling units is unviable for low cost carriers and small airlines. Instead, they will outsource this to other airlines.
The ground handling services business in India is about Rs 750 crore a year and is projected to double in the next couple of years.
01/05/06 Bipin Chandran/Business Standard