Celebi Shares Plunge 10% Following India's Revocation of Security Clearance

Stocks of Turkish ground-handling firm Celebi Airport Services dropped 10% on Friday in Istanbul, after India canceled the company's security clearance in response to growing demands to ban Turkish firms because of Turkey's backing of Pakistan, a nation blamed for sheltering terrorism.

The stock fell by 222 points to 2,002, adding to its losses to the tune of almost 30% in the last four sessions. The company had been under increasing pressure as calls grew for action against its Indian operations.

India's Ministry of Civil Aviation said in a statement on Thursday that, "in the exercise of power vested in DG, BCAS, the security clearance of Celebi Airport Services India Pvt Ltd is revoked with immediate effect in the interest of national security.

Minister of State for Civil Aviation and Cooperation Murlidhar Mohol said, "Keeping in mind the severity of the matter and the appeal to safeguard national interests, we have taken cognizance of these requests. The safety and interest of the country are always our first priority."

According to this instruction, Delhi International Airport Limited (DIAL) has officially severed its connection with Celebi entities that operate ground handling and cargo facilities at Indira Gandhi International Airport (IGIA). Likewise, Adani Airport Holdings ended ground handling contracts with Celebi at Mumbai and Ahmedabad airports with immediate effect.

The central government also instructed the suspension of Celebi Aviation's ground handling facilities at Kempegowda International Airport in Bengaluru.

Ever since it ventured into the Indian market in 2008, Celebi has consistently grown its presence within India's aviation industry. Reports indicate that Sumeyye Erdogan, daughter of Turkish President Recep Tayyip Erdogan and married to Selcuk Bayraktar—the manufacturer of Bayraktar military drones that are reported to be used by Pakistan against India—is a partial owner of the firm.