Çelebi Aviation, a leading Turkish aviation services company, is reeling from a major setback in India, where its operations have been abruptly halted due to a national security crackdown. The decision, coupled with a 19% plunge in the parent company’s stock price over two days, has thrust Çelebi into the spotlight. Here’s a detailed look at the reasons behind this crisis and its far-reaching implications.
India’s Security Clampdown Triggers Crisis
On May 15, 2025, India’s Bureau of Civil Aviation Security (BCAS) revoked the security clearance of Çelebi Airport Services India Pvt. Ltd., a key subsidiary, citing “national security” concerns. The order, effective immediately, has barred Çelebi from providing ground handling and cargo services at nine major Indian airports, including Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai. This drastic move follows escalating geopolitical tensions between India and Turkey, fueled by Turkey’s public support for Pakistan during recent conflicts, notably India’s “Operation Sindoor” targeting terror camps in Pakistan-occupied Kashmir.
The BCAS decision has led to swift action from airport authorities. Delhi International Airport Limited (DIAL) terminated its contracts with Çelebi for ground handling and cargo operations at the Indira Gandhi International Airport. Similarly, Bangalore International Airport shifted its services to other providers, such as AI Airport Services and the Bird Group. Çelebi’s significant footprint in India—handling 70% of operations at major hubs like Delhi and Mumbai—makes this disruption a critical blow to its business.
Stock Price Takes a Hit
The financial impact has been immediate and severe for Çelebi Hava Servisi A.S., the parent company listed on the Istanbul Stock Exchange. On May 15, the stock plummeted 10% following the BCAS announcement, with an additional 10% drop on May 16, resulting in a 19% decline over two days. Closing at 2,224 Turkish Lira, the stock reportedly hit a low of 2,002 Turkish Lira during trading. Investors are rattled by the loss of Çelebi’s Indian operations, which handle 58,000 flights and 540,000 tons of cargo annually and contribute significantly to the company’s global revenue.
Çelebi’s 15-year presence in India, backed by over $220 million in infrastructure investments and a workforce of 10,000, underscores the scale of the financial hit. Industry estimates suggest the company could lose up to ₹250 crore in business from India, a market critical to its growth strategy.
Geopolitical Tensions at the Core
The root of Çelebi’s troubles lies in the deteriorating India-Turkey relationship. Turkey’s vocal backing of Pakistan, particularly after India’s military response to the Pahalgam terror attack, has inflamed tensions. Reports of Pakistan deploying Turkish-origin drones during the conflict have further strained ties, prompting India to take a hard stance against Turkish companies. Social media platforms like X have amplified public outrage, with hashtags like #BanTurkey and #BoycottTurkey gaining traction, alongside calls from groups like the Shiv Sena to expel Turkish firms.
Compounding the issue, unverified claims surfaced alleging that Sümeyye Erdoğan Bayraktar, daughter of Turkish President Recep Tayyip Erdoğan, holds a stake in Çelebi Aviation Holding. Çelebi issued a strong denial, clarifying that its Turkish shareholding is limited to the founding Çelebioğlu family, with 65% of shares owned by international investors from Canada, the US, the UK, Singapore, and the UAE. Despite these efforts, the rumors have fueled public and investor skepticism, exacerbating the crisis.
Çelebi’s Operations and the Ripple Effect
Çelebi’s role in India’s aviation sector is substantial, encompassing passenger handling, ramp operations, and cargo management. Its sudden exit raises concerns about potential disruptions for airlines and passengers, especially at high-traffic airports. While airports are transitioning to alternative providers, the logistics of this shift could lead to short-term challenges. DIAL has pledged to protect the welfare of Çelebi’s 10,000 employees, but the company’s long-term prospects in India remain uncertain.
Çelebi’s Response and Uncertain Future
Çelebi Aviation India has responded by reaffirming its commitment to the country and denying any political affiliations. In a statement, the company highlighted its compliance with regulations, its contributions to India’s aviation sector, and its efforts to safeguard its workforce. However, the BCAS order signals India’s prioritization of national security over economic ties with companies perceived as linked to adversarial interests. The growing boycott movement and public sentiment against Turkish firms further dim Çelebi’s chances of a swift recovery in India.
Globally, Çelebi operates in countries like Turkey, Hungary, Spain, and Germany, but the loss of its Indian market could prompt investors to reassess its risk profile. The company now faces the daunting task of mitigating financial losses while navigating a fraught geopolitical landscape.
