Air India, SpiceJet duopoly ends, airports can now provide security service to foreign airlines

Aneesh Phadnis Updated - September 30, 2024 at 12:23 PM.

Until now only domestic airlines’ staff could carry out tasks such as manning aircraft or frisking passengers in secondary checks.

Foreign airlines can now contract airport operators for security functions, opening up competition and reducing service disruption risks.

Until now only domestic airlines’ staff could carry out tasks such as manning aircraft or frisking passengers in secondary checks. These functions can now be done by airport employees too with Bureau of Civil Aviation Security (BCAS) relaxing its norms.

The move comes in the backdrop of recent financial crisis at SpiceJet, a major provider of security services to foreign airlines within India. SpiceJet took up security service contracts after closure of Jet Airways in 2019.

Eighty foreign airlines operate scheduled flights to India and account for 55 per cent market share of the country’s international air traffic.

Airports with majority foreign holding such as Bengaluru airport (where Fairfax holds 64 per cent stake), however, will not be permitted to provide security services to foreign airlines as per the BCAS circular of September 13. Cargo terminal operators approved by BCAS can perform relevant security functions, it said.

Security Services

Currently Air India and SpiceJet provide security services to foreign airlines across the country. As per industry sources, 6-8 personnel need to be assigned per flight to carry out various security related functions. These also include overseeing baggage loading and checks of an aircraft before departure.

Earlier this year International Air Transport Association (IATA) had highlighted the challenges of having limited number of security service providers. IATA had requested BCAS to expand the pool as it would bring healthy competition and improve service quality.

Foreign airline executives also expressed fears about possible disruption to their services over salary delays and attrition in SpiceJet.

SpiceJet, completed ₹3000 crore stake sale earlier this month, claimed “there have been no significant delays or issues related to staffing shortages.” 

“SpiceJet has ensured that all contractual obligations with our foreign airline partners are met without any disruptions. Our security staffing at airports, including those in Delhi, has been maintained at the required levels, and there have been no significant delays or issues related to staffing shortages. We continue to monitor our operations closely to ensure flawless service delivery,” the airline said in a statement.

Air India did not respond to a query. Adani group run Mumbai International Airport Ltd declined comment.

GMR group which runs airports in Delhi, Hyderabad and Goa has evinced interest in undertaking the security tasks.

“ Delhi International Airport Limited is actively developing a plan to implement these security services and ongoing discussions are underway with certain foreign airlines to explore the potential collaboration,” said a GMR spokesperson.

Published on September 29, 2024 12:29

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