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The domestic ground handling industry has sought a stimulus package, including a moratorium on interest on borrowings, waivers on certain fixed costs and deferment of statutory taxes, among others while struggling in the face of the coronavirus outbreak, 

The ?4,000-4,500 crore ground handling industry, which heavily depends on the airline's operations, has lost as much as 90 percent of the business amid suspension of all commercial air passenger services due to the lockdown to tackle the coronavirus pandemic.

However, cargo and special flights have been kept away from the lockdown. Celebi, which commands a 25% market share of the domestic industry, has the mandate to carry out ground handling business at Mumbai, Delhi, Bangalore, Hyderabad, Cochin, Ahmedabad, and Kannur airports.

Pointing out that not many businesses can continue paying to their employees with no revenue coming in, he said at a point of time it becomes imperative to have some sort of stimulus.  

Consultancy, Centre for Pacific Aviation, in one of its reports released on March 25, had estimated USD 3.3-3.6 billion losses for the domestic aviation industry with the losses for the ground handling segment pegged at $80-90 million.

"As an association for ground handlers and cargo warehouse operators we have asked for 6-7 (relief) measures. What we wanted is whatever possible support is provided by the bank or the government towards employees payroll costs, which is very critical for us. Many governments (abroad) have done it," he said.

Stating that his industry needs some substantial support to be able to continue paying salaries, he said the business cannot run on its own unless there is cash flow.

We have asked for a complete waiver of our fixed costs to the airports for at least six months, which is based on the hope that recovery will happen in the next three months or so. Therefore, the rent and utilities cost that is being imposed on us should be waived for us. We are not seeking postponement as it will not help us," Ramchandran said.

The ground handling industry has also asked for deferment of the settlement of statutory taxes payment for managing the cash flows, he said, adding, the GST payment which is done at present on an accruement basis should be done on realization because airlines are not paying to the companies.

"And we are expected to pay GST upfront based on what we have accrued. So we need a dispensation on that on real realization rather than an accrued business. I don't know how much of this may become bad debts as well for us because the airlines are going bust as we see," he said.