Why Did Turkish Firm Celebi's Stock Plunge 10% After India Revoked Security Clearance?
Click to start listening
Synopsis
The recent plunge of Turkish firm Celebi’s stock by 10% raises questions about international business relations and national security. With India revoking its security clearance amid escalated tensions, what does this spell for the future of Turkish investments in the region?
Key Takeaways
- Celebi Airport Services faced a 10% stock drop due to revoked security clearance.
- India's decision reflects concerns over national security.
- Minister of State emphasized the importance of national interests.
- Ground handling operations at major airports have been suspended.
- Turkish investments in India may face increased scrutiny.
New Delhi, May 16 (NationPress) The stock of Turkish ground-handling company Celebi Airport Services plummeted by 10% on Friday following India's decision to revoke the company's security clearance. This action comes amid growing demands to ban Turkish businesses due to their support for Pakistan, which is accused of harboring terrorism.
The share price dropped by 222 points, reaching 2,002 in Istanbul on Friday, marking a nearly 30% decline over the past four trading sessions. The stock has faced mounting pressure in recent days due to heightened public sentiment against the Turkish firm.
In a formal announcement, the Ministry of Civil Aviation stated on Thursday that 'in the exercise of power conferred upon DG, BCAS, the security clearance in Celebi Airport Services India Pvt Ltd is hereby revoked with immediate effect in the interest of National Security.'
Minister of State for Civil Aviation and Cooperation, Murlidhar Mohol, emphasized, 'Recognizing the seriousness of the issue and the call to protect national interests, we have taken cognizance of these requests. The Ministry of Civil Aviation has revoked the security clearance of the said company. Ensuring the safety and interests of the nation remains our top priority.'
In line with the directive from the Bureau of Civil Aviation Security (BCAS), Delhi International Airport Limited (DIAL) has officially terminated its contract with Celebi for ground handling and cargo operations at the Indira Gandhi International Airport (IGIA).
Additionally, Adani Airport Holdings has canceled the ground handling concession agreement with Celebi at Mumbai and Ahmedabad airports, effective immediately.
Furthermore, Celebi Aviation has had its ground handling activities suspended at Kempegowda International Airport in Bengaluru due to the central government’s directives.
Since entering the Indian market in 2008, Celebi has significantly expanded its operations in the aviation sector. Reports indicate that the firm is partly owned by Sumeyye Erdogan, the daughter of Tayyip Erdogan, who is married to Selcuk Bayraktar, the producer of Bayraktar military drones that Pakistan has utilized against India.
Point of View
The government's decision to revoke the security clearance of Celebi Airport Services underscores a firm commitment to national safety and security. In a time when international relations are increasingly complex, prioritizing the safety of our citizens and interests is paramount.
NationPress
08/06/2025
Frequently Asked Questions
What caused Celebi's stock to drop?
The stock fell by 10% after India revoked Celebi Airport Services' security clearance due to concerns over Turkey's support for terrorism.
What actions has the Indian government taken against Celebi?
The Indian government revoked Celebi's security clearance and directed the termination of contracts with various airports, including IGIA and Kempegowda International Airport.
Who owns Celebi Airport Services?
Celebi is partly owned by Sumeyye Erdogan, the daughter of Turkish President Tayyip Erdogan.
What does this mean for Turkish businesses in India?
This decision may lead to further scrutiny and potential restrictions on Turkish investments and operations in India.
How significant is the stock drop?
The 10% drop reflects investor sentiment and concerns over the company's future in India, with total losses nearing 30% over four sessions.
