Photo Courtesy: celebiaviation.com/about/about-us
Turkish Aviation Company Çelebi Goes to Court After Centre Revokes Clearance
In a significant development, Turkish aviation company Çelebi has approached the court after the Indian government revoked the clearance for its ground handling operations at Indian airports. This move has sparked a legal battle between the company and the government, with Çelebi seeking to overturn the decision.
Background
Çelebi Aviation, a leading Turkish company in the ground handling services sector, has been operating in India for several years. The company provides a range of services, including baggage handling, cargo handling, and aircraft servicing, to various airlines at Indian airports. However, the recent revocation of clearance by the Indian government has put Çelebi’s operations in jeopardy.
Shareholding Pattern Clarification
Celebi Aviation has explicitly denied allegations involving Sümeyye Erdoğan, the daughter of Turkish President Recep Tayyip Erdoğan, stating that she holds no shareholding or ownership in the parent organization. The company’s shareholding pattern reveals:
• International Institutional Investors: 65% ownership, with Actera Partners II L.P. (a Jersey-registered fund) holding 50% and Alpha Airport Services BV (a Dutch-registered entity) holding 15%.
• Çelebioğlu Family: The founding family members, Mr. Can Çelebioğlu and Ms. Canan Çelebioğlu, each hold 17.5% of the shares, with no political affiliations or associations.
Financial Performance
Çelebi Aviation has reported strong financial performance in recent years, with steady revenue growth and improving profitability. Some key financial metrics include:
- Revenue: The company reported revenue of TRY 4.6 billion (approximately INR 1,150 crores) in 2022, up 15% from the previous year.
- Net Profit: Çelebi Aviation’s net profit stood at TRY 240 million (approximately INR 60 crores) in 2022, up 20% from the previous year.
- EBITDA Margin: The company’s EBITDA margin has been steadily improving, reaching 12% in 2022.
Impact of Revocation
The revocation of clearance by the Indian government is likely to have a significant impact on Çelebi Aviation’s operations and financial performance. Some potential implications include:
- Loss of Revenue: The company’s revenue from Indian operations may decline significantly, impacting its overall financial performance.
- Reputation Damage: The revocation of clearance may damage Çelebi Aviation’s reputation in the industry, potentially impacting its relationships with airlines and other clients.
- Operational Disruption: The company’s ground handling operations at Indian airports may be disrupted, leading to potential losses and inconvenience to clients.
Court Case: Company’s Response
Çelebi Aviation has approached the court seeking to overturn the government’s decision, arguing that the revocation was arbitrary and unfair. The company emphasizes its compliance with all relevant regulations and highlights its:
• Long-term Presence: 15 years of operation in India, employing over 10,000 Indians and supporting thousands of families.
• Investments: Over $220 million invested in long-term infrastructure, operating at nine of India’s busiest airports
Statistics and Data
Some additional statistics and data that may be relevant to this case include:
- Indian Aviation Market: The Indian aviation market is one of the fastest-growing in the world, with passenger traffic expected to reach 500 million by 2025.
- Ground Handling Services: The ground handling services market in India is highly competitive, with several players operating in the sector.
- Foreign Investment: Foreign investment in the Indian aviation sector is subject to various regulations and guidelines, including those related to security and safety.
Overall, the case of Çelebi Aviation underscores the importance of regulatory compliance and the need for consistency with government policies. As the court case progresses, it will be interesting to see how the various stakeholders respond and adapt to the developments.
