Çelebi eyes electric ground equipment investment, promises better baggage services at Dhaka airport

Founded in 1958, Turkey-based Çelebi Aviation provides ground handling, cargo handling and warehouse management services worldwide. The company is one of four potential competitors, alongside Biman Bangladesh Airlines, for the ground-handling contract at the third terminal of Hazrat Shahjalal International Airport (HSIA).

Dave Dorner, group CEO of Çelebi Aviation, recently spoke to The Business Standard's senior staff correspondent Kamran Siddiqui in a virtual interview about the company's interest in Bangladesh, investment plans, baggage-handling standards, operational efficiency and the ongoing tender process.

Q: How do you see the potential of Bangladesh's aviation market, and why is Çelebi interested in Bangladesh?

Dave Dorner: We have been looking at Bangladesh for a long time, and we are excited that the process is underway. We see Bangladesh as a good fit for Çelebi, and Çelebi as a good fit for Bangladesh.

Our strategy focuses on fast-developing and emerging markets, where we believe we excel. The opportunity aligns with what we can deliver, as the government, regulators, airport operator and customers want to scale up quickly and improve services. 

My personal involvement with Bangladesh goes back almost 10 years because we believe we can genuinely add value here.

Q: Are you interested in operating at other airports in Bangladesh?

Dorner: Yes. We operate at roughly 70 airports worldwide, serving airlines, passengers, freight forwarders and shippers at both large, complex airports and smaller facilities. We would consider other opportunities in Bangladesh where we can add value and authorities believe our expertise would be beneficial.

Q: If selected for the third-terminal contract, how much do you plan to invest?

Dorner: We invest heavily in equipment and people, with plans to invest as much as possible in new electric ground-support equipment (GSE).

When we began operations in Jakarta and Bali in January this year, both major stations were about 93% electric, with all equipment brand new. Although electric equipment costs more initially, we believe it offers a lower total cost of ownership, alongside environmental benefits. Reliability is critical, and greener ground operations can help airlines, governments, airports and passengers reduce their carbon footprint.

However, new equipment can have long delivery lead times. We may need to deploy equipment from existing operations elsewhere to improve services from the outset.

Q: If selected, how quickly could passengers receive their baggage?

Dorner: Passengers at Dhaka's current terminal face frustration over baggage collection times and check-in queues. The new terminal operator will establish service-level standards for ground handlers and self-handling airlines.

Our objective is never to fall below agreed standards. We want to deliver services properly rather than pay penalties for poor performance. Dhaka Airport can ultimately meet or exceed some of the world's best service standards.

Ground handling is only part of the equation, however. Infrastructure limitations, safety requirements and aircraft arriving significantly off schedule can affect baggage delivery. We would aim to meet or exceed standards in areas we can control.

Q: Could a foreign ground handler help reduce airfares?

Dorner: Ground handling typically accounts for around 3% to 5% of an airline's total costs. Airlines want quality services at the lowest possible cost, making operational efficiency particularly important.

Properly trained and allocated staff, compliance with service-level agreements and timely aircraft turnaround can offer better value. Helping airlines turn aircraft around as planned could encourage more flights, while increased competition and capacity could influence ticket prices.

Q: What improvements could passengers expect within six months or a year?

Dorner: I would like to see a substantial improvement in passenger satisfaction, with smooth and positive travel experiences. This means effective queue management, convenient access to departing aircraft, efficient arrival processing and quick, reliable baggage delivery without losses.

We also want well-trained employees who work safely and earn a good living. Airlines should be satisfied with our services, while the airport operator and civil aviation authorities should see us as a trusted partner. Our goal is to build a successful airport community that prioritises passengers while meeting the needs of airlines, employees, the terminal operator and government.

Q: Why should authorities select Çelebi over its competitors?

Dorner: We specialise in fast-developing markets and have professionals experienced in running efficient operations. Our experience in Hungary, where we entered around 20 years ago, and in Indonesia demonstrates our approach to emerging markets.

I respect our competitors and will not comment on their strengths or weaknesses. Our ability to operate in challenging, rapidly growing markets is what I can highlight.

We are also committed to developing local suppliers rather than simply importing equipment. We help local companies understand the standards required to become our business partners. This can create thousands of additional jobs beyond the airport, strengthen local capabilities, reduce supply costs and potentially help companies become exporters.

We believe our model can create value both within the airport and across the wider economy.