Celebi Shares Plunge After India Revokes Security Clearance
Turkey-based ground handling company Celebi Hava Servisi saw its stock price crash nearly 20% over two trading days after India revoked its security clearance. The decision, triggered by national security concerns, has put the company’s India operations—previously a key source of revenue—in jeopardy and sparked legal proceedings in Indian courts.
India Revokes Celebi’s Aviation Security Clearance
On May 15, India’s Bureau of Civil Aviation Security (BCAS) withdrew the security clearance of Celebi Airport Services India, thereby barring it from operating across Indian airports. This move came against the backdrop of worsening diplomatic relations between New Delhi and Ankara, particularly following Turkey’s open support for Pakistan during recent geopolitical tensions, including its alleged military aid to Islamabad during Operation Sindoor.
The cancellation of Celebi’s license comes after months of internal review and rising public scrutiny over the presence of foreign entities in sensitive Indian infrastructure, particularly those with indirect ties to adversarial nations.
Celebi Challenges the Ban in Court
In response to the ban, Celebi has filed a legal challenge in the Delhi High Court, calling the action “unjustified” and lacking specific evidence. The company argued that the revocation would not only impact its business but also threaten the livelihoods of nearly 3,800 employees in India. It also clarified that while the parent company is headquartered in Turkey, it is operated through international corporate structures with no direct control from the Turkish government.
The court is expected to hear arguments over the coming weeks, with Celebi seeking interim relief to resume operations at least temporarily.
Stock Market Reaction and Industry Fallout
Following the announcement, Celebi’s shares took a severe hit on the Istanbul Stock Exchange, dropping 10% on both Thursday and Friday. The fall prompted automatic trading halts, and investor confidence was visibly shaken. The Indian market accounted for a sizable portion of Celebi’s revenues—nearly 25% of its global earnings stemmed from its presence in India across nine airports including Mumbai, Delhi, and Bengaluru.
With Celebi’s exit, Indian ground handling is seeing a realignment. Airlines and airports are shifting contracts to domestic players such as AI Airport Services Ltd (formerly Air India Air Transport Services Ltd), Bird Group, and Air India SATS.
This development marks a significant moment in India’s tightening of aviation security protocols and its broader strategic shift to reduce reliance on foreign vendors from politically misaligned countries.
