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India delays handling decisions

Handling Talk
The Indian government has deferred the award of ground handling contracts at over 90 airports across the country.

Two reasons have been put forward for the delay: the approaching 2019 Lok Sabha elections and the fact that the authorities have received complaints from some of the interested bidders.

The bids, which were opened in January, are now under examination and the awards will be made once a new government is formed, officials have said. This latest twist in the Indian aviation sector is yet another in a long series that has dogged the business for over two decades. The timing of the awards is not helpful either, for it will mean that a successful bidder will have less than four weeks to fulfil all the requisite security clearances and commence operations: June 30 has been set as the deadline for operational start up.

The only light at the end of the tunnel is that now airports are obliged to take on a third handler, and not restrict activities to AAI or Air India (with or without a JV partner or a subsidiary).


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