The federation stated that AI Airport Services Limited, in particular, has been facing challenges in handling Air India flights following the additional business it received after the withdrawal of the third agency
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New Delhi
India’s airline industry has urged the Centre to ensure the appointment of a third ground handling agency at Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA), stating that the airport is not complying with the regulatory requirement.However, the airport operator told businessline that the process of appointing a third ground handling agency is already underway and is expected to conclude by the end of July.Accordingly, the Federation of Indian Airlines (FIA), representing Air India, IndiGo and SpiceJet in a representation to the Ministry of Civil Aviation (MoCA) which was reviewed by businessline, said that Ground Handling Services Regulations, 2017 and the Airports Authority of India (Ground Handling Services) Regulations, 2018, mandate that airports with annual passenger throughput exceeding 10 million passengers must have three ground handling agencies.Responding to businessline’s queries on the matter, a CSMIA spokesperson said the airport initiated the selection process for a third ground handling agency earlier this year and received seven applications by the bid submission deadline of February 28, 2026. Following an assessment of the applicants’ financial strength and technical capabilities, all seven qualified bidders were invited to participate in the Request for Qualification and Proposal (RFQP) process on July 2, 2026.According to the spokesperson, the competitive bidding process is currently underway and is expected to conclude by the end of July, following which the selected agency will be onboarded. Efficient operationsThe spokesperson added that, in the interim, ground handling services at CSMIA continue through the existing licensed agencies, ensuring safe, reliable and efficient airport operations.On its part, the federation in the representation, has said that while major airports such as Delhi and Hyderabad comply with the requirement, CSMIA currently has only two operational ground handling agencies following the termination of the licence of Bird Worldwide Flight Services (BWFS) by the airport operator in January 2026.Besides, the FIA said the reduction has left AI Airport Services Limited (AIASL) and Adani as the only two operational ground handling agencies at the airport, placing additional pressure on existing resources as airline operations continue to grow.The federation stated that AI Airport Services Ltd, in particular, has been facing challenges in handling Air India flights following the additional business it received after the withdrawal of the third agency.Furthermore, the industry body said the operational impact becomes more evident during disruptions such as the strike at CSMIA on May 18, 2026, weather-related disruptions and seasonal traffic peaks.As per the representation, the availability of a third ground handling agency could have enabled FIA member airlines using empanelled agencies to mitigate operational disruptions through the availability of additional manpower.No clarityAdditionally, the federation said member airlines have raised the issue with the airport operator but have not received any clarity regarding the appointment of a third ground handling agency.In addition, the FIA has requested the MoCA to review the existing ground handling framework at CSMIA and ensure compliance with the regulatory requirement of maintaining three ground handling agencies.The federation said the appointment of an additional agency would help restore operational stability, safeguard passenger convenience, improve competition and strengthen operational support, including through the reinstatement or appointment of another ground handling agency.Published on July 20, 2026
