Bar on airline handling cargo stirs row

Bangalore International Airport Ltd (BIAL) had stopped IndiGo from handling cargo, saying no domestic airline with a market share below 25 per cent would be allowed to do its own ground-handling.

This would have disqualified all carriers, including market leader Jet Airways which commands 21 per cent share as of April, from undertaking their own groundhandling. Following the dispute, IndiGo had lodged a protest with the Directorate General of Civil Aviation (DGCA), which in turn shot off a letter to BIAL on the matter.

However, BIAL refused to take any action, resulting in the flare-up between the two parties. Beseeched by IndiGo on the matter and worried that BIAL might be setting a precedent for other airports, the ministry stepped in and diffused the situation.

Sources in the civil aviation ministry say the incident may prompt a rethink on the new ground handling policy, which envisages appointment of three dedicated parties to handle cargo operations at airports.

At present, each airline is responsible for its own cargo handling operations at the airport.

“The current ground handling policy will be in force till December 31 this year. There is also a possibility that the policy may be reviewed further, since airlines have been saying it is much cheaper for them to handle their own cargo,” the source said.

Airlines have been clamouring for a rethink on the ground handling policy in the wake of mounting losses, expected to cross Rs 8,000 crore this year.

“Self-handling cargo is half as cheap as getting another centralised agency to do it. We have better control on the service we are able to offer to customers,” SpiceJet director Ajay Singh said.