India ousts Turkey's Celebi: $200 million lost in market-cap, jobs on the line

By Admin

19 May, 2025

The Indian government's sudden decision to revoke security clearance for Turkey's Celebi Airport Services has sent shockwaves across the aviation services industry, both in India and internationally. The move has led to the complete shutdown of Celebi’s operations at nine of India’s busiest airports, triggering a financial domino effect for the company — including a staggering $200 million loss in shareholder value and a potential humanitarian crisis for nearly 4,000 employees.

A Sharp Fall in Market Confidence

Celebi, a Turkish ground handling and cargo services provider listed on the Istanbul Stock Exchange, witnessed one of its sharpest declines in recent history. The stock dropped 20% over just two trading sessions, with shares falling 222 points on May 16 to close at 2,002 lira. This dramatic crash in market value reflects the deep investor concern over the company’s future without its vital Indian operations.

Why Was Celebi Forced Out?

The Indian government cited “national security” as the reason behind the cancellation of Celebi’s security clearance. While no further details were provided, the decision impacted Celebi Airport Services India and its group companies, effectively halting all operations overnight. The timing has fueled speculation, especially amid strained geopolitical relations between India and Turkey.

Massive Loss in Indian Revenue

India was Celebi’s second-largest market, contributing a significant chunk of its global revenue. In FY 2023–24, the company generated ₹1,522 crore in revenue and ₹393 crore in EBITDA from India. Two of its Indian subsidiaries — Celebi Delhi Cargo and Celebi NAS — were among the most profitable, jointly contributing ₹188 crore in post-tax profits.

In dollar terms, India brought in over $195 million of Celebi’s total $585 million global revenue, representing nearly one-third of the company’s income. With this crucial market now closed, Celebi is left scrambling to manage both lost income and its global expansion plans.

Operations Halted at Major Airports

Celebi operated at nine major Indian airports, including:

• Delhi
  
  

• Mumbai
  
  

• Bengaluru
  
  

• Chennai
  
  

These airports represent some of India’s highest traffic volumes. With Celebi’s sudden exit, competitors have already moved in to secure ground handling contracts, leaving little room for Celebi to regain lost ground, even if the court allows a future return.

The company had invested between $200 million and $250 million in Indian infrastructure over the last decade. Much of that is now stranded capital. Moreover, Celebi holds ₹183 crore in loans tied to Indian operations, and it remains unclear how the company will repay them in the absence of operational cash flow. Asset sales or corporate restructuring may become necessary.

Legal Battle Begins

Celebi has taken the issue to the Delhi High Court, challenging the government’s action. A hearing is expected soon. However, since “national security” is the basis for cancellation, legal experts suggest that the company might face an uphill battle. Even if Celebi wins the case, there's no assurance that its airport contracts will be restored.

Job Losses: A Human Cost

Perhaps the most tragic consequence of this debacle is the fate of over 3,800 employees who worked under Celebi’s contracts at different Indian airports. While some airport operators have hinted at absorbing these employees into new contracts, job uncertainty and salary concerns remain high among the workforce.

The Bigger Picture

Celebi’s exit from India marks more than just a corporate setback. It’s a clear warning about how geopolitical shifts and regulatory risks can alter the fate of even well-established foreign businesses. For Celebi, this could mean not just a dip in revenue — but a long-term loss of credibility, investment, and strategic advantage in one of the world’s fastest-growing aviation markets.

As the situation develops, all eyes remain on the Indian judiciary and Celebi’s next moves — but for now, the damage is done, and recovery will not come easy.