Celebi Share Price Crashed After India Revokes Security Clearance
FINANCE
Celebi Hava Servisi AS, a leading Turkish aviation services company, saw its stock price plummet by 10% for the second consecutive day on Friday, dropping 222 points to 2,002 TRY on the Istanbul Stock Exchange. The sharp decline, which marks a 30% loss over the past four trading sessions, follows India’s Bureau of Civil Aviation Security (BCAS) decision to revoke the security clearance of Celebi Airport Services India on May 15, citing national security concerns.
The BCAS order came amid escalating tensions between India and Turkey, driven by Turkey’s support for Pakistan during recent India-Pakistan conflicts, including Operation Sindoor airstrikes near Sargodha. Celebi, which has operated in India since 2008, manages ground handling and cargo services at nine major airports, including Delhi, Mumbai, Bengaluru, Hyderabad, and Chennai. These operations, handling 540,000 tons of cargo and 58,000 flights annually, account for approximately 25% of Celebi’s global business, making the revocation a significant blow.
The stock’s 32.3% decline from its all-time high of 3,285 TRY on April 8, 2025, has reduced Celebi’s market capitalization to around 4,800 Turkish lira (approximately ₹10,700 crore). While the broader BIST 100 index rose by 0.5% on May 16, Celebi’s crash stands out as a direct reaction to the Indian ban, highlighting the financial stakes of geopolitical tensions.
India’s decision is rooted in Turkey’s alignment with Pakistan, particularly during Operation Sindoor, where Pakistan reportedly used Turkish-made Bayraktar TB2 drones. Turkey’s vocal support on the Kashmir issue and the presence of a Turkish warship and Air Force C-130 in Karachi have further strained India-Turkey relations. In response, India has signaled economic repercussions for nations backing Pakistan, with Celebi becoming a prominent target.
Celebi Aviation India has pushed back against the allegations, denying any ties to the Turkish government. In a statement, the company clarified that it is “not a Turkish organization by any standard,” noting that 65% of its parent entity, Celebi Havacilik Holding A.S., is owned by international investors from Canada, the US, UK, Singapore, UAE, and Western Europe. It also debunked rumors of ownership by Sumeyye Erdogan Bayraktar, daughter of Turkish President Recep Tayyip Erdogan, and emphasized its compliance with Indian regulations through audits by the CISF, BCAS, and AAI.
Despite these defenses, the revocation has disrupted Celebi’s operations. Airports like Delhi’s Indira Gandhi International Airport (IGIA) have terminated engagements with Celebi, transitioning to providers like AISATS and Brid Group. Union Aviation Minister Ram Mohan Naidu assured that passenger and cargo handling will remain unaffected, with efforts underway to reassign Celebi’s employees to other service providers.
Public sentiment in India has been vocal, with the #BoycottTurkey movement gaining traction on social media platforms like X. Some users celebrated Celebi’s stock crash, with one post stating, “Celebi’s downfall is a lesson—India won’t tolerate companies from nations that back our enemies.” Others, however, questioned the fairness of targeting Celebi, which employs thousands of Indian workers and has operated in the country for over 15 years.
The fallout signals a deepening rift between India and Turkey. Travel platforms like EaseMyTrip and MakeMyTrip have issued advisories against traveling to Turkey, and the Confederation of All India Traders (CAIT) is considering a complete trade boycott of Turkey and Azerbaijan. As India strengthens ties with Turkey’s adversaries like Greece, Armenia, and Saudi Arabia, Celebi’s predicament may be a precursor to broader economic measures.
For Celebi, the loss of the Indian market poses a significant challenge. The company must now navigate financial recovery while rebuilding trust in a region where geopolitical tensions have overshadowed its operational track record. As of 04:01 PM IST on May 16, 2025, the Celebi saga underscores the high stakes of doing business in a politically charged environment.