Rivalry between AAICLAS and AIASL disrupts cargo handling at Chennai air cargo complex.
The ongoing conflict between two ground handling agencies, AAICLAS and AIASL, continues to impede efficient goods handling at the Chennai air cargo complex. AAICLAS, a subsidiary of the Airports Authority of India (AAI), and AI Airport Services (formerly Air India Air Transport Services) are at odds, impacting export cargo operations.
Currently, AIASL manages over 50 percent of the airline cargo terminal operations with less than 15 percent of the total export warehouse space and no terminal space for imported cargo. Conversely, AAICLAS, which acts as the landlord, has significant unused space due to low patronage from airlines.
This disparity creates an artificial shortage of space, leading to disruptions in cargo handling, according to Dinesh K Krishnan, Chairman of the Air Cargo Agents Association of India (ACAAI), Southern Region.
Krishnan highlighted the recurring nature of this issue and the lack of a viable solution despite continuous appeals to authorities. The ACAAI, Southern Region, expressed concern over the neglect by terminal operators, which has turned the once-vibrant Chennai air cargo complex into a troubled hub.
Both AAICLAS and AIASL accuse each other of encroachment and rental disputes, exacerbating the situation. The trade has increasingly diverted cargo to other airports, struggling to meet customer demands. Despite efforts to mediate, neither agency has met the trade’s expectations. Krishnan plans to engage with senior officials in AAI and the Tamil Nadu government to resolve the issue. However, sources within both agencies maintain that operations at the complex are normal.
