Chennai Airport terminates agreement with Celebi's Indian subsidiary

The Chennai Airport on Tuesday terminated its agreement with Indian subsidiary of Turkish aviation firm Celebi, reported Reuters.

In response, the company said that it has filed an arbitration against Airports Authority of India.

The decision comes after the Centre had revoked security clearance of the firm. The clearance is a prerequisite under Indian law for companies providing critical services at airports, including passenger and baggage handling.


The government's decision follows reports that the Pakistani army had used Turkish drones against India in the recent conflict. Nonetheless, Turkey has also expressed its support to Pakistan in 'good and bad' times after India's Operation Sindoor targeted terrorist infrastructure in the neighbouring nation.

Celebi vs MIAL
The decision comes after the Bombay High Court on Monday directed Mumbai International Airport Limited (MIAL) to hold off on awarding new contracts for ground and bridge handling services at the city's international airport.

The local subsidiary of a Turkish firm has approached the court under Section 9 of the Arbitration & Conciliation Act after the Adani Group-owned airport operating company decided to appoint IndoThai as the interim ground handling provider at CSMIA (Chatrapati Shivaji Maharaj International Airport) for the next three months.

Currently, Turkish handling service provider Celebi has filed two separate suits in the Bombay High Court. In another case, the company has filed a writ petition where it has made the Director General of Civil Aviation, the Bureau of Civil Aviation Security and the Airport Authority of India respondents. Also, the company has filed a separate petition against the central government in the Delhi High Court.

Celebi Aviation has been operating in India for over a decade, providing ground handling services at several airports including Delhi, Mumbai, Bengaluru, and Hyderabad. Several reports suggest that the company handles around 70% of the ground operations at Mumbai airport, including passenger services, load control, flight operations, cargo and postal services, warehouses and bridge operations.