Cargo, chaos and course correction

India’s air cargo sector is a crucial cog in the aviation industry. In FY2023-24, it handled 3.37 million metric tonnes of cargo, a 7 per cent year-on-year rise, driven by a growing middle class, the UDAN scheme, and improved infrastructure. Delhi and Mumbai led in cargo volume.

However, the sector’s vulnerabilities were exposed following the abrupt suspension of Çelebi Aviation, a Turkish company that managed 65 per cent of India’s air traffic at nine major airports. On May 15, the Bureau of Civil Aviation Security barred Çelebi from operations, citing national security concerns linked to Türkiye’s drone supply to Pakistan during Operation Sindoor. This followed the Pahalgam terror attack on April 22.

This sudden exit disrupted logistics, stranded cargo, and threw thousands of jobs into uncertainty. Çelebi challenged the decision, claiming procedural lapses, but the Delhi High Court upheld the suspension on July 7, prioritising national security and public safety. The verdict set a precedent for tighter scrutiny of foreign operators in critical sectors.

Founded in 1958, Çelebi Aviation entered India in 2008 through a joint venture at Mumbai International Airport and expanded by 2025 to Delhi, Bengaluru, Hyderabad, Chennai, Ahmedabad, Goa, Cochin, and Kannur. Çelebi’s Indian presence included three key entities: Çelebi Airport Services India Pvt Ltd, Çelebi Nas Airport Services India Pvt Ltd, and Çelebi Delhi Cargo Terminal Management India Pvt Ltd. These handled passenger services, ramp operations, cargo logistics, and bridge-mounted equipment.

By FY2024, India accounted for 33.8 per cent of Çelebi’s global revenue of $585 million. Although Çelebi Airport Services India reported a loss, it achieved a robust 25.24 per cent compound annual growth rate in revenue between FY2014 and FY2024. Employing over 10,000 Indians and investing $250 million in infrastructure, Çelebi was a crucial part of India’s aviation ecosystem until its suspension.

Çelebi’s exit disrupted ground operations, especially cargo handling, where it managed 35-40 per cent of operations at the airports. Delhi and Mumbai, key freight hubs, experienced shipment backlogs and customs delays. The Ministry of Civil Aviation and the Directorate General of Civil Aviation formed emergency task forces, reallocating operations to handlers like Air India SATS (AISATS), Bird Worldwide Flight Services (BWFS), Indo Thai Airport Management Services, and Air India Airport Services Ltd. (AIASL). At Delhi’s IGIA, Çelebi’s functions shifted to AISATS and GMR’s in-house team, while Indo Thai secured a 90-day interim contract in Mumbai, leasing Çelebi’s equipment. Airports prioritised critical cargo, such as pharmaceuticals and perishables, using manual overrides and radio frequency identification systems, though extended shifts strained the system. 

The human cost was significant. Over 10,000 Çelebi employees, mainly from low- and middle-income groups, faced job uncertainty. Quick onboarding by alternate handlers, with support from GMR and Adani, ensured continuity of employment, retaining staff on existing terms and issuing new Airport Entry Passes. Yet, emotional distress remains high, as employees mourn the loss of a familiar, “family-like” workplace culture and grapple with anxiety about long-term job security.

The Çelebi crisis, though disruptive, is catalysing much-needed reforms in India’s aviation sector. Domestic handlers and airport operators have emerged as key beneficiaries. AISATS and BWFS have secured major contracts at hubs like Delhi and Mumbai, leveraging infrastructure and absorbing Çelebi staff. Indo Thai now stands poised for permanent contracts through fresh tenders. State-owned AIASL is expanding at regional airports. Meanwhile, GMR and Adani have strengthened operational control, with Adani soon launching its ground handling services. 

To ensure long-term resilience, India must finalise the long-pending Draft Ground Handling Policy (2015), mandating at least three certified handlers per major airport to boost competition and operational standards. Extending Press Note 3 (2020) scrutiny to countries with geopolitical tensions will further safeguard critical infrastructure. Investment in training academies, shared equipment pools, and pre-approved backup handlers will strengthen contingency preparedness. The sector must also embrace automation, smart cargo tracking, and digital customs systems to minimise disruptions. 

With India ranked 38th out of 139 countries in the World Bank’s Logistics Performance Index (2023) and projected to handle 300 million passengers by 2030, strengthening domestic ground handling and embracing “Make-in-India” is imperative for long-term competitiveness.

(The writer is an associate professor and chairperson,
Department of OB&HR,
Ramaiah Institute of
Management)