Çelebi-Parent extended fall for straight second session; Turkish stock down 19% in 2 days

Shares of Çelebi Hava Servisi AS extended its free-fall for a second straight session and tanked another 10 per cent on Friday, May 16 after India revoked security clearance for its subsidiary, Çelebi Aviation India. In the latest move on Friday, Bangalore International Airport (BIAL) said that it has transitioned its ground handling operations from Çelebi Airport Services to other existing service providers.

Shares of Celebi Hava Servisi AS cracked 10 per cent to 2,002 Turkish Lira. The stock settled at 2,224 Turkish Lira, falling 10 per cent for the day. The stock has tumbled 19 per cent in the two sessions.

The airport made the announcement a day after a national security directive from the Bureau of Civil Aviation Security (BCAS). On May 15, India revoked security clearance for Turkish ground handling firm Çelebi Airport Services, a significant operator at major Indian airports.

Prior to Bengaluru, other major and busy Indian Airports like Delhi Mumbai and Ahmedabad also cut their ties with the Turkish Aviation firm. The decision follows Turkey’s vocal support for Pakistan after India conducted strikes on terrorist camps in response to the deadly Pahalgam terror attack.

Çelebi Aviation operates in India via two entities: Çelebi Airport Services India and Çelebi Delhi Cargo Terminal Management India. These entities handle ground and cargo services at major airports, including Delhi and Mumbai, where they manage 70% of operations.

Amidst scrutiny over its operations, Çelebi Aviation India has denied allegations that its clearance revocation is tied to political affiliations, particularly regarding Turkish President Erdoğan’s daughter. The company labelled these claims as “misleading and factually incorrect.”

The company's operations extend to crucial airport services such as passenger handling, load control, flight operations, and cargo handling across nine cities, including Hyderabad, Cochin, and Chennai. These functions are vital for maintaining smooth airport operations.

Çelebi Aviation India emphasised its status as a "professionally governed, globally operated aviation services company," highlighting its ownership by international investors from Canada, the US, the UK, Singapore, the UAE, and Western Europe.

The scrutiny coincides with calls to reduce cooperation with Turkish companies in India, driven by national sentiment against Turkey’s stance during post-Pahalgam hostilities. Çelebi asserts its professional governance amidst this climate of heightened scrutiny.