India | Updated Mar 26, 2008 at 01:50pm IST

Turbulence again for Hyderabad airport

Hyderabad: Controversies just don't seem to end for the city's new airport. The international ground handlers of the airport - Bobba Menezes and IA-SATS - are now accusing the airport developer GMR of breaching the contract.

According to the original agreement between the three parties, GMR cannot outsource ground handling services to any other company. However, domestic airlines are using their own staff for ground handling.

The ground handlers are fuming as well as it means a loss of Rs 140 crore. Each company had invested in Euro-3 compliant equipment and had trained their staff along international standards.

Now they are being forced to keep off the domestic terminal and service only international carriers.

Menezes and IA-SATS refuse to say anything on record. They fear that any legal action from their side will ruin their business prospects in India.

But they are angry. However, GMR says it has little choice in the matter. “The ministry has ordered us to allow airlines to use their own staff. So we can't do anything about it. We're forced to do this,” says VP, Corporate Planning and Risk Management, GMR, A Viswanath.

That's not the only issue. A Greenfield airport is supposed to use only Euro-3 compliant and battery operated equipment. But with the airlines taking care of ground services, farm tractors have made their entry into the airport.

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