While the Delhi HC upheld the CCS decision of restricting private airlines to perform ground handling operations, airlines knocked the doors of the Supreme Court. CNBC-TV18 learns that the airlines are in a big dilemma as the SC hearing is on the April 4, 2011, while the policy is getting implemented on April 1, 2011. CNBC-TV18’s Swati Khandelwal Jain reports.
Here is a verbatim transcript of Swati Khandelwal Jain’s comments on CNBC-TV18. Also watch the accompanying video.
We understand from sources that the new ground handling policy will come into effect from the April 1 this year. Remember, the ground handling policy was first formulated in 2007. But it could never get implemented because the private airlines including Jet Airways, JetLite, Kingfisher, Indigo, GoAir had opposed it because they restrict them from doing their own ground handling operations.
Now, the airlines say that this will mean that their ground handling cost will almost double, if they outsource this to one of the three operators that the policy permits. It also says that they may have to pass on the cost to the consumers, which means that the ticket prices could go up going forward.
We also understand that the airlines have about 15,000 or more direct and indirect employees which to the ground handling for them. So, it means that almost 15,000 or more jobs will be at stake.
Not just this, they have already invested over Rs 322 crore put together on ground handling infrastructure, so that’s going to be the big blow for the airline companies. Of course, we will have to wait and watch what really happens in the Supreme Court where the airlines have gone ahead and appealed to the Supreme Court against the judgment that came in from the Delhi High Court. But till then it’s going to be a big dilemma for the airline companies. We could see the ticket prices going up going forward.
By
Neha Jain
Here is a verbatim transcript of Swati Khandelwal Jain’s comments on CNBC-TV18. Also watch the accompanying video.
We understand from sources that the new ground handling policy will come into effect from the April 1 this year. Remember, the ground handling policy was first formulated in 2007. But it could never get implemented because the private airlines including Jet Airways, JetLite, Kingfisher, Indigo, GoAir had opposed it because they restrict them from doing their own ground handling operations.
Now, the airlines say that this will mean that their ground handling cost will almost double, if they outsource this to one of the three operators that the policy permits. It also says that they may have to pass on the cost to the consumers, which means that the ticket prices could go up going forward.
We also understand that the airlines have about 15,000 or more direct and indirect employees which to the ground handling for them. So, it means that almost 15,000 or more jobs will be at stake.
Not just this, they have already invested over Rs 322 crore put together on ground handling infrastructure, so that’s going to be the big blow for the airline companies. Of course, we will have to wait and watch what really happens in the Supreme Court where the airlines have gone ahead and appealed to the Supreme Court against the judgment that came in from the Delhi High Court. But till then it’s going to be a big dilemma for the airline companies. We could see the ticket prices going up going forward.
By
Neha Jain
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