Friday, 17 August 2012

AAI’s move a jolt for ground-handling firms



The Airports Authority of India’s (AAI) decision to increase the charges for ground-handling services across 60 of its airports, including those in the State, from Wednesday has come as a setback to the airline companies.
The ground-handling agencies will now have to pay between 32 to 36 per cent of their revenues to AAI compared to the 13 per cent they had been paying till July 31.
The increase in charges has come at a time when the airlines were finding it difficult to tide over the increase in Aviation Turbine Fuel costs, that was hiked twice this year, and other taxes.
Criticism
The haste in which the AAI implemented the decision, which was taken in June, without giving adequate time for the operating airlines has come in for criticism.
Ground-handling services include check-in, baggage handling, cargo handling, cleaning of aircraft interiors, loading and unloading of food and beverages on aircraft, providing electricity back-up to aircraft while they are in the tarmac, supplying water, and transporting passengers to and from planes to the terminal building and maintaining the toilets.
Airline officials are of the view that the increasing of the charges will increase operating costs as the ground-handling agencies will pass on the costs to the airlines which in turn will pass it on to the passengers.
The Thiruvananthapuram and Kozhikode international airports are managed by the AAI.
Three agencies
The AAI has also designated three agencies to carry out ground-handling services in 60 of its airports as deemed necessary under the new ground-handling policy.
The new policy aims at eliminating outsourced manpower and restricting the number of service providers operating at airports to improve service standards, safety and security.
Royalty to AAI
The Delhi-based Bhadra International India, which has been designated as one of the ground-handling agencies, had been paying 32.8 per cent royalty to AAI. Other agencies had been paying around 13 per cent, an official of a ground-handling agency said. Since February, Air India, its subsidiary AISATS, and Bhadra have been carrying out ground-handling activities of foreign airlines at airports in the country through their bona fide personnel. The orders have been issued under provisions of the Airports Authority of India Ground Handling Services (Regulations) 2007 and as part of strengthening security in sensitive areas of the airport, mainly the apron side and terminal.

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