Celebi exit sparks shake-up: what next for ground handling at India’s airports?

With the government abruptly revoking Celebi Aviation’s security clearance, GMR and Adani Airports have moved swiftly to take control of ground and cargo operations at major Indian airports, after the government abruptly revoked the Turkish-origin company’s security clearance citing national security concerns. The swift transition at some of India’s busiest airports — Delhi, Mumbai and Ahmedabad—marks the beginning of what could become a broader reshuffling of ground handling service providers across the country.

The Ministry of Civil Aviation revoked Celebi Airport Services India’s security clearance “with immediate effect” in the interest of national security, as stated in a government order signed by the joint director (operations).

The move comes amid growing concerns over Celebi’s ownership structure and its access to sensitive areas within Indian airports. The company had earlier defended itself, saying it was compliant with all foreign investment norms and was largely Indian-managed.

In response to the revocation, GMR Airports Ltd (GAL) has taken over cargo operations at Delhi’s Indira Gandhi International Airport. GAL, already a regulated agent with all required security clearances, said the concession terms mirror Celebi’s previous agreement to ensure continuity.

Meanwhile, Adani Airports has also confirmed that it has terminated Celebi’s ground handling concessions at Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) and Ahmedabad’s Sardar Vallabhbhai Patel International Airport (SVPIA). According to a joint spokesperson from both airports, Celebi has been directed to immediately hand over all facilities to ensure uninterrupted operations.

Adani further stated that existing employees of Celebi at CSMIA and SVPIA will be transferred to the new ground handling agencies on their current terms and conditions. “We will continue to provide seamless service to all airlines through new ground handling agencies selected by us. Ground handling operations at our airports will remain unaffected. We are fully committed to upholding the highest standards of service and national interest,” the spokesperson said.

While top airport operators are confident of avoiding disruption, the transition raises several immediate-to-intermediate questions. The foremost is how airlines that had existing contracts with Celebi across nine airports will adapt.

Even if airlines are willing to switch agencies, ground handling operations—ranging from check-in and baggage loading to aircraft towing and refuelling—require trained staff and certified equipment. Finding alternate agencies, onboarding personnel and ensuring continuity of regulatory clearances will take time. This interim period could be bumpy for airport services.

Another critical issue is the future of Celebi’s workforce. The company employs over 7,800 people directly in India, with many more linked through third-party contractors.

While both GMR and Adani have indicated continuity of employment, the sector has seen precedents of disruption—most notably during the collapse of Jet Airways and Kingfisher Airlines—where thousands of employees were left in limbo. In this case, however, given that the nature of work remains unchanged and needs to be fulfilled, most employees are expected to be absorbed into the new agencies.

Before the era of airport privatisation, ground handling in India was largely managed by Air India’s subsidiary, Air India Air Transport Services Ltd (AIATSL), or through the Airports Authority of India. Airlines either handled their own services or relied on these government-linked operators.

With the privatisation of metro airports and the arrival of global carriers with limited flight frequencies, outsourcing to professional Ground Handling Agencies (GHAs) like Celebi became the norm. It offered a cost-efficient model and allowed airlines to focus on core operations.

However, outsourcing also brought vulnerabilities. GHAs have access to high-security areas including aprons, airside operations and baggage systems. The Celebi case, exacerbated by geopolitical tensions and questions about ultimate ownership, has reignited debate around foreign entities managing critical airport functions.

Celebi NAS, in a letter to Mumbai International Airport Ltd (MIAL), insisted it had no political affiliations, and that all its Indian investments were cleared under FDI norms. The company’s CEO in India, Tauseef Khan, reiterated that no Turkish nationals sit on the board and that 65% of Celebi’s ultimate shareholding is held by international investors.

Despite the company’s defence, political pressure—including from Shiv Sena MLA Murji Patel, who met the MIAL CEO demanding Celebi’s suspension—seems to have precipitated the government’s decision. Celebi’s handling of the G20 leaders’ movement in 2023 in Delhi had once been a high point; ironically, it is now being forced to exit India’s most strategic airports.

As operations transition, all eyes are on how smoothly alternative agencies can be mobilised, how quickly equipment is transferred and certified, and how well airlines and passengers are shielded from turbulence. The government, for its part, is expected to fast-track security clearances for new agencies and personnel to avoid service disruptions.

In a separate but equally swift move, Adani Airports also terminated its lounge access partnership with DragonPass, another foreign service provider, stating that DragonPass customers would no longer have access to lounges at Adani-managed airports. Though not directly linked to the Celebi episode, it adds to the narrative of India’s airport operators asserting tighter control over sensitive services in the current geopolitical environment.

The coming weeks will test the preparedness of both private airport operators and government regulators to manage this critical transition—without sacrificing the efficiency and reliability that India's busy aviation sector demands.