AISATS Pushes for Fair Competition in India’s Ground Handling Sector

Introduction

The ground-handling sector in India is witnessing rapid expansion in line with the country’s booming aviation market. Air India SATS Airport Services (AISATS), a joint venture between Air India and Singapore-based SATS, currently manages nearly 70% of flights at key hubs. As the industry scales, AISATS has called for policy reforms that ensure fair competition based on flight volumes rather than passenger counts.

Growth of the Ground-Handling Industry

India’s ground-handling market was valued at $1.83 billion in 2024 and is projected to grow at a CAGR of 6.1% to reach $2.78 billion by 2031.

  • Major airports like Delhi, Mumbai, Bengaluru, and Hyderabad are undergoing significant infrastructure upgrades.

  • Growth is being driven not only by higher volumes but also by service quality, digital adoption, and sustainability initiatives.

AISATS’s Strategic Role and Global Leverage

AISATS has experienced broad-based growth in passenger and cargo operations. The company has:

  • Implemented digital tools for baggage tracking and resource allocation.

  • Strengthened safety and operational efficiency.

  • Drawn on the expertise of SATS, which operates across 215 airports in 27 countries, bringing global best practices to India.

Impact of UDAN on Regional Connectivity

The government’s UDAN scheme has expanded air connectivity into Tier-II and Tier-III cities. However:

  • Smaller airports operate on challenging economics due to volatile load factors and limited cargo capacity.

  • Despite these challenges, AISATS believes UDAN holds long-term promise as routes deepen and policy continuity improves.

Absorption of Celebi Workforce

The exit of Turkish ground-handler Celebi, which employed over 10,000 staff in India, reshaped the market. AISATS:

  • Already handles 16,000+ flights per month, and post-Celebi’s exit absorbed an additional 500–600 flights monthly (a ~3% rise).

  • 1,000–1,200 former Celebi employees were integrated into AISATS’s workforce, which now totals 17,000 staff pan-India.

  • Industry stakeholders ensured a seamless transition, with airport operators and government agencies stepping in to maintain continuity.

Regulatory Gaps and Policy Concerns

India’s draft ground-handling policy of 2015 remains unfinalized, creating ambiguity. AISATS argues that:

  • Regulations should be based on flight volumes, which directly reflect workload, rather than just passenger traffic.

  • Restrictive clauses limiting foreign ownership or airline participation in ground handling companies should be avoided.

  • Policymaking must balance fair play, competition, and quality standards while preventing monopolies.

Investment and Expansion Plans

AISATS is making a significant investment in the upcoming Noida International Airport, where it plans to establish:

  • A large cargo hub and logistics zone for e-commerce, pharma, and perishables.

  • Expanded operations aligned with India’s role as a global trade hub.

Internationally, AISATS is also exploring opportunities in the Middle East and Africa, complementing SATS’s global network.

Safety Certification by DGCA

AISATS recently became the first ground-handling services provider in India to secure a DGCA safety clearance.

  • The certification is based on safety management systems, risk protocols, SOPs, and operational standards.

  • It enhances passenger trust, safety compliance, and operational efficiency.

Challenges in Keeping Pace with Aviation Growth

With aviation demand set to rise:

  • The industry expects more ground-handling players to enter, ensuring healthy competition.

  • At smaller airports, local players may need support, but privatisation and better road connectivity will help them scale.

  • AISATS emphasizes the need for balanced competition and sustainable capacity building across hubs and regional airports alike.

Conclusion

AISATS’s dominance in India’s ground-handling sector underscores both the opportunity and the regulatory challenges the industry faces. With a 70% market share, the company is well-positioned to leverage its global expertise and domestic scale. However, its calls for policy clarity, fair competition, and flight-based regulation highlight the pressing need for reforms as India’s aviation ecosystem enters a transformative growth phase.


Location: Pune, Maharashtra, India

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