After the Central government revoked the security clearance of Turkish ground handling company Celebi NAS Airport Services, GMR Airport's owned Delhi International Airport Limited (DIAL) and Rajiv Gandhi International Airport (RGIA) have formally ended its association with Çelebi entities responsible for ground handling and cargo operations at Indira Gandhi International Airport (IGIA).
"Çelebi Airport Services India Pvt. Ltd. and Çelebi Delhi Cargo Terminal Management India Pvt. Ltd. were overseeing ground handling and cargo terminal functions, respectively. Following the termination, DIAL is working closely with existing service providers to ensure uninterrupted operations while safeguarding employee welfare," DIAL said in a statement.
"To ensure continuity and operational stability, DIAL is actively coordinating with the existing Ground Handling service providers - AISATS, and Bird Group." "In case of cargo operations, DIAL is working towards onboarding one of the pre-approved cargo handlers to ensure uninterrupted cargo operations," the statement also added.
In addition, DIAL has assured that all employees currently on the rolls of Çelebi entities for cargo and ground handling services at IGI Airport will be transitioned to the new employer(s) with immediate effect. These employees will continue under their existing terms and conditions of employment.
Similarly, RGIA airport in its statement said that "to ensure uninterrupted operations, RGIAirport is working closely with alternative service providers and regulatory authorities to facilitate a smooth transition."
The GMR Group's decision to cut ties with Celebi comes after India's apex body for aviation security, the Bureau of Civil Aviation Security, on May 15 revoked the security clearance for Turkish ground handling agency Celebi Airport Services India with immediate effect 'in the interest of national security. Celebi Airport Services India is a subsidiaries of Çelebi Aviation Holding, a Turkish company.
"In the exercise of power conferred upon DG, BCAS, 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 notification said.
The action comes amid increasing scrutiny of the company's operations in India following the discovery of Turkish-origin UAV components during the India–Pakistan border escalation under Operation Sindoor. Government said there was “concrete evidence of hostile technologies” being used by Pakistan, allegedly sourced from foreign entities.
Celebi currently covers 65 percent of Indian aviation traffic through its presence in nine airports including Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Cochin, Ahmedabad, Mopa and Kannur. It provides ground handling as Çelebi Airport Services India and cargo services as Çelebi Delhi Cargo Terminal Management India at Delhi.
The company also provides ground handling services for the international flight portion of Air India's operations at the Mumbai airport and also handles SpiceJet and FLY91's ground handling operations at the nine airports its currently serves in India.
Celibi Aviation also handles high-security tasks at Delhi, Mumbai and Chennai airports. It reportedly manages 58,000 flights in India annually and has 7,800 employees in India.
The company's presence at Indian airports had come under increased scrutiny, after finding evidence of Turkish-origin UAVs in the border escalation with Pakistan during Operation Sindoor.
Çelebi Aviation India has strongly denied allegations of political affiliations or ownership links with the Turkish government, after India’s Bureau of Civil Aviation Security (BCAS) revoked its security clearance citing national security concerns.
“Çelebi Aviation India unequivocally refutes all misleading and factually incorrect allegations circulating on social media regarding the company’s ownership and operations in India,” the company said in an official statement. It added that the organisation is “majority-owned (65 percent) by international institutional investors” from countries including Canada, the US, UK, Singapore, UAE, and Western Europe.
Murali Ramachandran, President India & Southeast Asia, Celebi Aviation, had in an interview told Moneycontrol that the company is majority owned by private equity now.
"Our parent has its head office in Turkey. That's where the Celebi business has its genesis. That's where the promoter has built the business. But the business is majority owned by private equity now. The majority shareholder of Celebi is a private equity company with investment funds which are predominantly blue-chip Canadian, American, Singapore, and UAE investment vehicles," Ramachandran had said.
Ramachandran had also told Moneycontrol in an another interview that the company was mulling to invest around $80 million in India till 2027.
"Celebi has already invested around $250 million (since its entry into the Indian market in 2007). In terms of expected investment, we will be adding $28 million in ground handling in the next four years. Around $30 million are likely to be invested in cargo business,” Ramachandran had said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.