The Airports Authority of India (AAI) has invited bids for ground handling services at 38 airports, including some of its busiest airports such as Chennai, Kolkata, Ahmedabad and Goa.
Ground handling activities include passenger services such as check-in and baggage handling, aircraft handling, servicing and cleaning as well as cargo handling services. In May, the AAI had invited bids for 55 other airports, most of which were airports being connected under the government’s regional connectivity scheme.
10 years
Proposals have been invited from airlines, ground handling agencies, airports and their joint ventures for a period of 10 years.
The entity that quotes the highest royalty will be the winning bidder. The bid document floated by the AAI on November 20 defines this sum as compensation or fee paid for providing ground handling services to the airport in addition to rent for space provided to the winning bidder at an airport.
“The airports for which we have invited bids include those that see high traffic as well as some airports in remote locations such as Port Blair,” said a senior AAI official. He added that the proposals sought for a different set of airports in May were being examined.
The selected bidder will have to form a special purpose vehicle to implement the contract, according to the bid document.
Revised regulations
Last year, the Civil Aviation Ministry revised regulations for ground handling services and allowed domestic airlines to undertake ground handling activities. However, a foreign airline can carry out only passenger and baggage handling activities at airports, while a ground handling agency with foreign ownership of more than 50% of its paid up capital is barred from providing services at civil enclaves at defence airfields.
The new rules also say that airports should have at least three ground handling agencies.