Dnata deal still on hold, says India

Dnata's bid to manage four major Indian airports as part of an international consortium, even after a year of getting the contract, appears to be in doubt as the Indian government awaits 'security clearance'.

In a related development, India has allowed Emirates to carry 1,000 passengers out of Kochi and 500 passengers out of Bangalore weekly. The decision was made a few days ago to allow more traffic between Dubai and the two south Indian destinations.

India, meanwhile, has decided to build seven new airports and upgrade the major ports of entry as part of a campaign to improve its tourism infrastructure, said Syed Shahnawaz Hussain, Indian Minister for Civil Aviation in Dubai yesterday.

"There are proposals to lease out the airports at Delhi, Mumbai, Chennai and Kolkata, to renowned international airport operators to make them world class airports. There is a lot of interest among many experienced airport operators from different parts of the world, especially from the UAE as well as Malaysia which are under consideration," said the minister.

"We have not yet received security clearance about Dnata. That's why it has not materialised. Until that happens, it will not be possible for us to let them operate. The Dnata consortium is still in the list of applicants."

Last May, Dnata (30 per cent) with its partners - United Airlines (10 per cent), Menzies Aviation (30 per cent) and Interglobe (30 per cent), won a 10-year licence for ground and passenger handling at four of India's five biggest airports - New Delhi, Mumbai, Chennai and Thiruvanathapuram.

Later, the Indian government raised security objections, saying Dnata has former Pakistani air force officers in its management. Dnata has denied the charge and furnished details of its ownership and management.

Dnata sources said its bid is on hold. "India has not responded to our queries. Negotiations between the two parties have stopped and our proposal is currently on hold," said a Dnata spokesperson.

The Indian minister said his government is taking a fresh look at the leasing process.

"We want many international players to participate in the leasing process. Our objective is to get a good mix. Those who would get the contract for Mumbai airport, should not get the contract for Delhi airport as well.

"In the new arrangement, we will only keep the air traffic control and security with us. The rest will lie with the licensee.

"We want to promote these two airports as international transit points, rather than a national entry port. So, we have a new and fresh outlook on managing the airports."

He said his government has been quite liberal in granting bilateral traffic rights with a view to invite maximum international airlines into India and to give tourists a varied choice and best service.

"This will provide further connectivity with various state capitals. During the last three years, additional traffic rights have been given for more than 33,000 seats per week," he said.