Turkiye's Celebi Hava Servisi Explores Legal Remedies Following Termination of Agreements in India

Turkiye's Celebi Hava Servisi AS announced on Friday that it will explore all legal and administrative avenues to contest the unilateral termination of several licence and concession agreements in India. This decision follows the Bureau of Civil Aviation Security (BCAS) revoking security clearance for Celebi, citing national security concerns. The revocation comes shortly after Turkiye supported Pakistan and criticised India's actions against terror camps.

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Following the BCAS decision, operations of Celebi's various entities in India have been halted. These include Celebi Airport Services India Pvt Ltd (CASI), Celebi GH India Pvt Ltd (CGHI), Celebi Nas Airport Services India Pvt Ltd, Celebi Delhi Cargo Terminal Management India Pvt Ltd, and Celebi GS Chennai Pvt Ltd (CGSC). Celebi has been active in India's aviation sector for over 15 years, employing more than 10,000 people across nine airports, including Delhi, Mumbai, and Ahmedabad.

Termination of Agreements

In a statement to Turkiye's stock exchange on Friday, Celebi Hava Servisi AS revealed that four concession and licence agreements between its subsidiaries and Indian airport authorities have been unilaterally terminated. The agreement between Celebi Delhi Cargo Terminal Management India Pvt Ltd and Delhi International Airport Ltd (DIAL), valid until 2034, has been ended. Celebi holds a 74% stake in this venture.

The ground handling services licence agreement between CGHI, which is 61% owned by Celebi, and Ahmedabad International Airport Ltd (AIAL) has also been terminated. This agreement was set to last until 2032. Additionally, the Bridge Mounted Equipment Service Agreement valid until 2036 and the Concession Agreement for Ground Handling Services valid until 2029 with Mumbai International Airport Ltd (MIAL) have been terminated. Celebi Nas Airport Services India Pvt Ltd is 59% owned by Celebi.

Impact on Operations

The concession agreement between CASI and DIAL, valid until 2030, has also been terminated. CASI is almost entirely owned by Celebi with a 99.9% stake. Furthermore, agreements with Cochin International Airport Ltd (CIAL) and Kannur International Airport Ltd were terminated ahead of their August 31, 2025 expiry date. The ground handling concession agreement with Hyderabad Rajiv Gandhi International Airport, valid until 2029, has also ended.

Celebi emphasised that none of its subsidiaries have engaged in activities that would breach national security or Indian laws. The company plans to challenge these allegations through all available legal channels to annul the terminations. In a filing on Thursday regarding the BCAS order, Celebi reiterated its intention to pursue all remedies to address these allegations and reverse the orders.

Government Response

Civil Aviation Minister K Rammohan Naidu stated on Thursday that national interest and public safety are paramount and non-negotiable. Following BCAS's revocation of security clearance for Celebi, the civil aviation ministry announced its coordination with airport operators to ensure a smooth transition. Efforts are being made to retain employees working with Celebi so they can continue contributing.

CASI was operating at airports in Delhi, Bengaluru, Cochin, Hyderabad, Goa (GOX), and Kannur. CGHI was active at Ahmedabad airport; Celebi Nas Airport Services India Pvt Ltd operated at Mumbai airport; Celebi Delhi Cargo Terminal Management India Pvt Ltd was at Delhi airport; and Celebi GS Chennai Pvt Ltd functioned at Chennai airport.

With inputs from PTI