Airlines had opposed the policy and challenged it in courts on the basis that it would force them to opt for costlier ground handlers and sack thousands of employees who currently do the job for them. "I don't see the logic in such a decision and will revisit this entire thing. We will also talk to airlines about what they feel on this issue and take a decision that is acceptable to all," Singh said. The review will consider allowing airlines to continue in the self-handling role, something they say is most cost-effective and efficient.
Metro airports were to have three ground handling companies — one each headed by the local airport developer, by Air India
Sources said the aviation ministry decided on reviewing this decision as it does not put extra burden on struggling airlines. "We have been seeking rationalization of taxes on jet fuel and a review of service tax on both domestic and international air travel. These requests have so far not had any impact. Neither state governments, nor the finance ministry has done anything to rationalize taxes. We are doing whatever is in our domain to prevent airlines from closing down," said sources.
The move to allow FDI by foreign airlines to invest in desi ones is also expected to benefit only the well-run ones. "The airlines that are facing the biggest existential crises are unlikely to get any funds this way. But FDI opens the way for JV startups. So we have to provide the right atmosphere by undertaking some much-needed reforms," said an official.
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