Kerala High Court moved over Kannur airport ground-handling

THIRUVANANTHAPURAM: Air Corporation Employees Union (ACEU), the recognised union of Air India and its ground-handling subsidiary Air India Transport Services Limited (AITSL), has moved the High Court challenging Air India (AI) chairman and managing director’s decision to permit joint venture firm Air India SATS Airport Terminal Services (AI-SATS) to carry out ground-handling at the upcoming Kannur International Airport, sidelining AITSL. The HC issued notices to the civil aviation ministry and Air India last week seeking a reply within two weeks.

DC had earlier reported that AI nominated AI-SATS as ground-handling agency for Kannur airport overlooking objections from employees. The ACEU had also submitted memorandums to the civil aviation minister and AI higher-ups in this regard. AI-SATS is a joint venture with Singapore Airport Terminal Services. ACEU's contention is that the decision was against AI’s turnaround plan of 2012 to improve the national carrier’s financial position. Moreover, the decision was taken unilaterally by the CMD without discussing with the board of directors of either AI or its ground-handling subsidiary, AITSL. From this, they argued, the AI would suffer financial losses to the tune of Rs 30 to 40 crore annually.

According to ACEU, AI's turnaround plan envisaged hiving off of its ground-handling services to the subsidiary, except for Delhi, Bangalore, Hyderabad, Thiruvananthapuram and Mangalore airports where the ground-handling was already given to AI-SATS. This plan was even approved by the Centre, and the Supreme Court  also upheld it. ACEU also said that the decision favouring a foreign joint venture firm for ground-handling at Kannur airport was also against the national aviation policy that promotes Make in India.