Turkey-based airport ground handling company Çelebi Aviation Holding experienced a dramatic nearly 20% drop in its share price over two days after India revoked the security clearance of its Indian subsidiaries. This decision effectively halted the company’s operations in India, which contributes significantly to its revenue. In response, Çelebi announced it will pursue all available legal and administrative measures to challenge the Indian government’s move, emphasizing its commitment to the Indian market despite the setbacks.
The sudden revocation came amid heightened tensions between India and Turkey, particularly due to Turkey’s support for Pakistan in the recent India-Pakistan conflict. India’s Bureau of Civil Aviation Security (BCAS) withdrew security clearance for Çelebi Airport Services India and its associated companies, citing national security concerns. Çelebi Airport Services India, however, firmly stated that it is an Indian enterprise led by Indian professionals and denied any Turkish organizational control.
Legal Battle and Market Impact
Following the revocation, Çelebi Airport Services India filed a petition in the Delhi High Court, seeking to overturn the decision. The case is expected to be heard shortly, as the company looks to restore its ability to operate in India. Meanwhile, the news caused Çelebi’s stock to plummet on the Istanbul Stock Exchange, with a 10% fall on Thursday and another 10% drop on Friday, leading to multiple trading suspensions due to heavy volatility.
The company condemned the allegations behind the clearance revocation, describing them as unfounded and damaging. Çelebi highlighted that its subsidiaries have always complied with Indian laws and maintained national security standards. The company pointed out its significant investment in India’s aviation sector—over $250 million since 2009—and its role as a major employer of more than 10,000 Indians. Çelebi’s Indian operations accounted for approximately one-third of its consolidated revenue, underlining the importance of this market to the group.
Shift in India’s Ground Handling Market
With Çelebi’s contracts terminated at various Indian airports, several airports and airlines have started turning to other ground handling providers such as AI Airport Services, Air India SATS, and the Bird Group. Ground handling services are crucial to airport operations, covering passenger processing, baggage and cargo handling, aircraft servicing, ramp operations, and catering.
Çelebi Airport Services India also addressed rumors on social media regarding its ownership, particularly denying any connection to Turkey’s President Erdoğan’s family. The company reiterated it is majority-owned by international institutional investors and operates globally without political affiliations. This clarification comes as the company seeks to distance itself from the political controversies surrounding Turkey’s stance in the region.
The developments around Çelebi reflect the broader geopolitical tensions impacting international business operations, especially in sensitive sectors like aviation and security. The ongoing legal proceedings and market responses will be closely watched as Çelebi strives to regain its foothold in the important Indian market.
