Çelebi Stock Tanks 20% After India Revokes Security Clearance

Çelebi Aviation Holding, a major Turkish airport ground handling company, is facing a significant crisis after India revoked the security clearance of its Indian subsidiary. The Indian government’s decision, citing “national security” concerns, has effectively brought Çelebi’s operations in India to a sudden halt.

The company’s stock price took a dramatic hit, plunging nearly 20% in just two days. On Thursday, Çelebi’s shares dropped 10% on the Istanbul Stock Exchange, closing at 2,224 Turkish Lira (TL). The following day, they crashed another 10% to 2,002 TL, forcing trading suspensions.

Why Was Security Clearance Revoked?

The move comes amid heightened tensions between India and Turkey following Turkey’s support for Pakistan during a recent military conflict. India’s aviation security regulator, the Bureau of Civil Aviation Security (BCAS), revoked the security clearance of Çelebi Airport Services India, along with its associate entities in the country.

Çelebi maintains that its Indian operations are entirely managed by Indian professionals and have no links to Turkish organizations. However, the Indian government appears to be taking a hard line, citing national security concerns.

Çelebi’s Response and the Impact on the Company

Çelebi has vowed to fight the decision, stating it will pursue “all administrative and legal remedies” to reverse the security clearance revocation and the subsequent contract terminations by Indian airports.

The company emphasized its commitment to India, highlighting its status as the largest foreign investor in the country’s ground handling and air cargo sector. It has invested over $250 million in India and employs over 10,000 Indians.

The Indian arm of Çelebi generated a significant portion of the company’s revenue—33.8%—in 2024.

Shifting Landscape in India’s Aviation Sector

Indian airports and airlines are now seeking alternative ground handling services from established players like AI Airport Services, Air India SATS Airport Services, and the Bird group. This abrupt change poses a serious challenge to Çelebi’s operations and its future in the Indian market.

The situation remains fluid, with Çelebi fighting to retain its presence in India. However, the immediate impact on the company’s stock price and its operations in the country is undeniable.