Celebi shares crash 10% in Istanbul as India revokes security clearance for Turkish firm

Celebi shares crash 10% in Istanbul as aviation watchdog revokes security clearance

Shares of Celebi Hava Servisi AS crashed 10% in Istanbul on May 16 a day after aviation watchdog BCAS revoked the security clearance of the firm's India unit, Celebi Airport Services India.

BCAS had revoked the security clearance of ground handling company Celebi Airport Services India with immediate effect in the “interest of national security”.

The move by the Bureau of Civil Aviation Security came against the backdrop of Turkiye’s backing for Pakistan and its condemnation of India’s recent strikes on terror camps in the neighbouring country and Pakistan-occupied Kashmir (PoK) under ‘Operation Sindoor’. Pakistan had also used Turkish drones on a large scale in the military conflict with India.

“… the security clearance in r/o Celebi Airport Services India Pvt Ltd is hereby revoked with immediate effect in the interest of national security,” the BCAS said in an order. The security clearance under the category ‘Ground Handling Agency’ was approved by the BCAS in November 2022.

The stock was under pressure in the past few days amid clamour for action against the firm.

On May 16, the stock fell 222 points, or 10%, to trade at 2,002 in Istanbul, extending its losses to nearly 30% in four sessions. The 52-week high of the stock is 3,285 and 52-week low is 1,660. The market capitalisation of the stock is approximately Rs 10,700 crore (4,800 Turkish lira)

Çelebi Aviation India rejected allegations regarding the company’s ownership and operations in India and reaffirmed its long-standing commitment to the country’s aviation sector.

“We are not a Turkish organisation by any standard and adhere fully to globally accepted practices of corporate governance, transparency, and neutrality, with no political affiliations or links to any foreign government or individuals,” it said in a statement.

In compliance with the BCAS directive, Delhi International Airport Limited (DIAL) formally ended its association with Çelebi entities responsible for ground handling and cargo operations at the Indira Gandhi International Airport (IGIA).

Following the termination, DIAL is working closely with existing service providers to ensure uninterrupted operations while safeguarding employee welfare, a DIAL statement said.

Celebi Airport Services India, which is part of Turkiye-based Celebi, offers services at nine airports — Mumbai, Delhi, Cochin, Kannur, Bangalore, Hyderabad, Goa (GOX), Ahmedabad and Chennai. Celebi has been operating in India for the past 15 years.

According to Celebi’s website, its presence in India grew exponentially with three different entities.

The operator of Delhi International Airport said it was working with existing airport ground handling service providers AISATS and Brid Group after it cut ties with Celebi.

Murlidhar Mohol, MoS Civil Aviation, said the government had received requests from across India to ban Celebi Airport Services without providing details.

"Recognising the seriousness of the issue and the call to protect national interests, we have taken cognizance of these requests and Ministry of Civil Aviation has revoked security clearance of the said company," Mohol said on X.

The revocation for Celebi came amid rumours that Erdogan’s daughter — Sumeyye Erdogan Bayraktar — is part owner of the parent company Çelebi Aviation Holding.