Last year, as part of an ongoing change to legislation surrounding the employment of ground staff, the Bureau for Civil Aviation Security refused to extend airport passes for outsourced ground handling agents, before later extending staff permits until March 2017. After this date, airlines will only be permitted to hire staff from three registered ground handling agencies, including Air India’s subsidiary, at all major airports. Non-major airports will be exempt from the changes.
A BCAS official explained the reasons behind limiting the agencies, saying that the effect of airlines hiring their own staff has seen increased crowds on the ramp, which threatens to compromise security.
The new policy is yet to be implemented, however, leaving airlines uncertain as to where to source future ground staff. Some 5,000 employees at Delhi airport alone are predominantly outsourced at present, meaning the change will also lead to substantial job losses. In India, where the unemployment rate is notoriously high, unemployment actually peaked to a five-year high of 5% in the year 2015-2016.
The concern, in addition to potential delays and definite job cuts, is that the move will result in rising costs for airlines, as the ground handling agencies, in their minority, will have the authority to charge as they see fit.
The federation of Indian airlines reportedly told the civil aviation ministry that it expects “absolute mayhem” to ensue as a result of the changes. “If we have just three agencies to choose from, the cost will be high, which low cost carriers cannot afford,” commented said Ujjwal Dey, Associate Director of the federation. “We are not against the policy, but we will need at least a year for this transition.”
