India Revokes Celebi’s Aviation License; Shares Tumble 10%

India revokes license of civil aviation firm celebi

In a significant move reflecting escalating geopolitical tensions, the Indian government has revoked the security clearance of Celebi Airport Services India Pvt. Ltd., a subsidiary of Turkey-based Celebi Aviation Holding. The decision, effective immediately, was announced by the Bureau of Civil Aviation Security (BCAS) on May 15, citing national security concerns.

A Huge Impact on Celebi Aviation’s Airport Services

Celebi has been a prominent player in India’s aviation sector since 2008, providing ground handling and cargo services at nine major airports, including Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Ahmedabad, Goa, Cochin, and Kannur. The company manages approximately 58,000 flights and handles around 540,000 tonnes of cargo annually, employing about 7,800 staff.

Following the revocation, major airports such as Delhi’s Indira Gandhi International Airport and Mumbai’s Chhatrapati Shivaji Maharaj International Airport have terminated their contracts with Celebi. The Adani Group, which operates the Mumbai and Ahmedabad airports, has also ended its partnership with Celebi and severed ties with a Chinese lounge service provider.

Celebi Aviation's share price drop by 10 percent to hit new monthly low
Celebi Aviation’s share price drop by 10 percent to hit new monthly low

What Exactly Led India to Revoke Celebi Aviation’s License?

While the BCAS did not disclose specific details, the revocation aligns with India’s response to Turkey’s support for Pakistan during recent geopolitical developments. Notably, Turkey’s backing of Pakistan following India’s Operation Sindoor, a counter-terrorism initiative in Pakistan-occupied Kashmir, and reports of Turkish drones being used against India have raised security concerns.

Celebi’s Response

In response to the revocation, Celebi Aviation India issued a statement distancing itself from political affiliations, asserting that it is not a Turkish organization and adheres to global corporate governance standards. The company emphasized that it is majority-owned by international institutional investors and managed by Indian professionals.

Broader Implications

The revocation of Celebi’s license underscores India’s heightened scrutiny over foreign involvement in critical infrastructure, especially amid rising diplomatic tensions. The move is part of a broader backlash against Turkey in India, including public boycott campaigns, cancellation of travel itineraries, suspension of academic ties, and planned trade boycotts led by groups like the Confederation of All India Traders (CAIT).

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