4 days ago
After cases in Delhi and Mumbai, Turkey-based Celebi takes legal battle to Madras High Court
After moving the Delhi High Court and the Bombay High Court, Turkey-headquartered airport ground handling major Celebi has now knocked on the doors of the Madras High Court as part of its legal battle against Indian aviation authorities and airports following the revocation of its security clearance in India—a key market—and the consequent termination of its contracts by various Indian airports.
One of Celebi's Indian subsidiaries—Celebi GS Chennai Pvt Ltd—has filed two arbitration applications and a request for interim measures against the Airports Authority of India (AAI) before the Madras High Court against the termination of its contract at the AAI-operated Chennai International Airport.
'…our subsidiary, Celebi GS Chennai Private Limited, 100% of whose capital belongs to our company, filed two arbitration applications with a request for interim measures against the Airports Authority of India at the High Court of Judicature at Madras on 26.05.2025 and 27.05.2025 regarding the unjust unilateral termination of the Ground Handling Concession Agreement regarding CGSC's operations in Chennai International Airport due to the cancellation of the security permit of CGSC by the Civil Aviation Security Bureau of the Ministry of Civil Aviation of India on the grounds that it poses a threat to national security,' parent company Celebi Hava Servici said in a regulatory filing in Istanbul.
The lawsuits follow cases filed by three other Celebi subsidiaries—Celebi Airport Services India, Celebi Delhi Cargo Terminal Management India, and Celebi Nas Airport Services India—before the Delhi High Court and the Bombay High Court against the security clearance revocation and the resultant cancellation of Celebi contracts by the operators of Delhi and Mumbai airports.
Amid the backlash in India over Turkey's support for Pakistan in the India-Pakistan conflict, India's aviation security regulator BCAS on May 15 revoked the security clearance of an Indian arm—Celebi Airport Services India—of Celebi on grounds related to 'national security' with immediate effect. The revocation also applies to other associate entities of Çelebi in India. This led to Indian airports terminating their contracts with Celebi group companies. Defending itself, Celebi Airport Services India said that it is 'truly an Indian enterprise' led and managed by Indian professionals, and is 'not a Turkish organisation by any standard'.
Celebi, which operated through five subsidiaries at nine Indian airports, is challenging the revocation of its security clearance and the resultant cancellation of contracts by the airports before various courts. The company has argued before the courts that the revocation of its security clearance was in violation of due procedure and natural justice as the Centre suddenly cancelled the clearance without notice and any opportunity for the company to make its case. On its part, the government has argued that it can exercise its plenary powers in the interest of national security and aviation security.
The Delhi High Court reserved its order in the case, while a vacation bench of the Bombay High Court granted temporary relief to Celebi by restraining Mumbai International Airport Ltd (MIAL) from finalising the tender to replace Celebi's subsidiary till the matter is heard by the regular court.
India is an important market for Celebi, and the company's share price has declined almost 21 per cent since the revocation of its India security clearance. According to the company's regulatory filings, in its consolidated revenue of around $585 million in 2024, its five Indian arms cumulatively accounted for a 33.8 per cent share, which comes out to over $195 million. Celebi operated at nine Indian airports—Mumbai, Delhi, Kochi, Kannur, Bengaluru, Hyderabad, Ahmedabad, Chennai, and Goa (Mopa).
The airports and airlines that were working with Celebi are turning to the other major ground handling players in India's aviation sector like AI Airport Services, Air India SATS Airport Services, the Bird group, and Indo Thai Aviation Services. Ground handling refers to operations that are critical for flights to be prepared and operated. These include passenger handling and check-in, baggage handling, cargo handling and management, aircraft servicing and maintenance, ramp services, and catering.
Celebi Airport Services India said that it is a globally operated aviation services company with no political links or affiliation, and is majority-owned by international institutional investors. The company also termed as 'factually incorrect' the allegations about its ownership that have been doing rounds on social media. These include the claim that Sümeyye Erdoğan Bayraktar—daughter of Turkey's President Recep Tayyip Erdoğan—is a part owner in Celebi. The company categorically rejected this claim.
