In a dramatic turn of events, the Indian government has revoked security clearance for Turkey’s Çelebi Airport Services, forcing the company to halt operations across major Indian airports. The move has wiped out nearly $200 million in market capitalization, sending shockwaves through the aviation industry.
Why Was Çelebi Ousted?
The government cited national security concerns as the primary reason for the decision, impacting Çelebi’s subsidiaries, including Çelebi Delhi Cargo and Çelebi NAS. The timing of the action has raised geopolitical questions, especially amid strained India-Turkey relations.
Financial Fallout & Market Impact
- Stock Crash: Çelebi’s shares plummeted 20% on the Istanbul Stock Exchange, closing at 2,002 lira on May 16.
- Revenue Loss: India accounted for one-third of Çelebi’s global revenue, generating ₹1,522 crore in FY24.
- Debt Concerns: The company faces ₹183 crore in outstanding loans, now uncertain due to halted operations.
Job Losses & Industry Shake-Up
With Çelebi’s exit, over 3,800 employees are at risk of losing their jobs. Airports have begun reassigning contracts, making a quick return unlikely even if legal relief is granted.
Legal Battle & Future Prospects
Çelebi has approached the Delhi High Court, seeking to challenge the government’s decision. However, legal experts suggest that national security cases rarely see quick resolutions.
What’s Next for India’s Aviation Sector?
With Çelebi out, Indian airport operators are expected to restructure ground handling contracts, potentially benefiting domestic service providers. The long-term impact on foreign investments in India’s aviation sector remains to be seen.
Stay tuned for more updates on India’s aviation industry, Çelebi’s legal battle, and global market reactions!
