Turkey’s Çelebi Hava Servisi AS suffered a major setback as India revoked security clearance for its airport subsidiaries, leading to an estimated loss of nearly $200 million in shareholder value. This decision halted operations at nine key Indian airports, including Delhi, Mumbai, Bengaluru, and Chennai. Çelebi’s Indian business accounted for ₹1,522 crore in revenue and ₹393 crore in EBITDA in fiscal year 2024, representing about one-third of the company’s global revenue.
Stock Market Impact and Valuation Drop
Following the revocation, Çelebi’s shares plunged 20% over two trading sessions on the Istanbul Stock Exchange, bringing market capitalization down to approximately ₹10,700 crore (4.8 billion Turkish lira). This represents a 30% decline from its recent 52-week high.
Government Cites National Security Concerns
The Indian government revoked Çelebi’s security clearance on grounds of national security amid escalating geopolitical tensions, notably India’s objection to Turkey’s support for Pakistan. This move abruptly ended Çelebi’s presence in India’s aviation sector, causing disruption in operations and financial strain.
Operations Halted and Contracts Reassigned
Çelebi’s contracts at major Indian airports have been reassigned, effectively barring the company’s immediate return. The company’s ground handling and cargo infrastructure investments, valued between $200–$250 million, face potential write-offs or repurposing.
Financial and Employment Challenges
Çelebi is left with ₹183 crore in outstanding loans linked to its Indian business. With operations frozen, these liabilities remain unresolved. Over 3,800 employees are affected, although airports have pledged to absorb them through other service providers.
Legal Action and Uncertain Future
Çelebi has sought legal relief through the Delhi High Court, with a hearing scheduled soon. However, the invocation of national security by the government suggests a difficult path ahead. Even if legal proceedings favor Çelebi, restoring contracts and investor trust remains uncertain.
