The Airports Authority of India (AAI) has cancelled its tender for ground handling services at 76 airports, according to a report on The Hindu.
The report claims the move came after concerns over some short-listed bidders offering steep royalties. A new tender will now take place.
The tender was started in May 2018, but faced several delays. In January, AAI short-listed bidders and asked other companies to match the bids when objections were raised.
According to reports, royalties as high as 226 per cent were quoted by some entities and how that would make ground handling business unviable in the country.
The bidding process undertaken by AAI also deterred players from participating in another tender – the disinvestment of Air India’s subsidiary for ground handling – Air India Air Transport Services Limited (AIATSL), which was put out to tender in February.
AIATSL has stations at 76 AAI airports for which bids were invited.