In a span of just two days, Celebi Hava Services, a Turkish airport ground handling company, has witnessed a massive market capital loss of over ₹2,500 crore (approximately $293 million). This decline follows Turkey’s support for Pakistan, which led to India canceling the security clearance for Celebi’s subsidiary companies due to national security concerns. As a result, the company’s shares plummeted by nearly 20% on Thursday and Friday.
Celebi’s Legal Challenge After India’s Decision
In response to India’s actions, the Istanbul-based company stated that it would resort to all administrative and legal measures to challenge the Indian government’s decision. Celebi emphasized the importance of its Indian operations, noting that over a third of its projected $585 million revenue in 2024 would come from its subsidiaries in India.
On Thursday, the Bureau of Civil Aviation Security (BCAS) canceled Celebi Airport Services India’s security clearance with immediate effect. This move impacted all the group’s associated units operating in India. Celebi has asserted that its Indian operations are “genuinely an Indian enterprise” managed by Indian professionals and that it is in no way a Turkish organization. This action by Indian authorities came after Turkey’s support for Pakistan during the India-Pakistan tensions last week.
Celebi Suffers ₹2,500 Crore Loss in Two Days
Following the government order, Celebi’s shares on the Borsa Istanbul dropped by 10% to close at 2,224 Turkish lira on Thursday. On Friday, the shares continued their decline, dropping another 10% to 2,002 lira, with trading being halted multiple times due to the heavy sell-off. In just two days, the company faced a market value loss exceeding ₹2,500 crore. Celebi Airport Services India has approached the Delhi High Court to challenge the cancellation order, with a hearing expected on Monday. The company, in a regulatory filing, stated, “We will take all administrative and legal steps to clarify these baseless allegations and reverse the orders imposed.” Celebi further emphasized that its subsidiaries have always complied with Indian laws and have never posed a national security threat.
$210 Million Investment and 10,000 Jobs Created
Since entering the Indian market in 2009, Celebi has invested over $250 million and provided employment to more than 10,000 Indians. The company operates across nine airports in India, including Delhi, Mumbai, Bengaluru, and Hyderabad, through five different subsidiaries. Its largest subsidiary, Celebi Airport Services India, was operating at six major airports. With the suspension of Celebi’s operations, many airports and airlines in India are now turning to alternative ground handlers like AI Airport Services, Air India SATS, and Bird Group.
Meanwhile, Celebi has issued a clarification on social media, denying claims that its ownership is linked to Turkish President Recep Tayyip Erdogan’s daughter, Sümeyye Erdoğan Bayraktar. The company refuted the allegations as factually incorrect and reiterated that its majority ownership belongs to international institutional investors with no political affiliations.
Conclusion
The ongoing legal and political tension between India and Turkey has led to significant financial consequences for Celebi Hava Services, with its market value suffering a sharp decline. While the company seeks to challenge the Indian government’s actions, its future in India hangs in the balance as authorities continue to scrutinize the security implications of its operations.
