Cabinet approves NACIL, SATS joint venture

The Union Cabinet today approved the proposal to the National Aviation Company of India Limited (NACIL) for setting up of a Joint Venture Company with M/s. Singapore air Terminal Services (SATS) for undertaking Ground Handling / Cargo Handling activities at various airports in India. NACIL and SATS would hold 50:50 equity ratio in the Joint Venture Company. The JVC would be managed by the Board of Directors consisting of representatives from NACIL and SATS in equal proportion. The Chairman of the Board and CEO of JVC would alternate between NACIL and SATS for a fixed tenure. All profits and losses of the business would be shared by NACIL and SATS in the ratio of the equity structure. The approximate total investment in the project would be :
Bangalore- Cargo handling Rs. 99 crores, Ground Handling Rs. 73 crores
Hyderabad: Ground Handling Rs. 80 crores

National Aviation Company of India Limited (NACIL), into which the erstwhile Air India Limited and Indian Airlines Limited have amalgamated, today holds a major share of the ground handling business at Airports in India. With the introduction of independent world class handling agencies at the airports, there would be induction of modern equipment, technology and resource management tools leading to very high level of competition in the field. In order to succeed in retaining majority of the business, NACIL is required to take proactive measures to upgrade its services by induction of modern technology with special focus on customer services and quick response to customer needs.
Establishing a Joint Venture partnership with a company, which is reputed in the field of ground handling services, would be an important step towards establishing a world class handling facility. While the ramp handling remains to be a strong point of NACIL, their customer service, passenger handling and cargo handling areas will get the required boost in quality, to face the competition effectively. The JV will contribute towards improved efficiency, better resource utilization and induction of human resource at lower cost. In short, establishing a Joint Venture for Ground Handling will be a significant step to retain and increase the market share of NACIL in the years to come.
23/02/09 Press Information Bureau

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Categories: Foreign Feb 2009, NACIL Feb 2009, New Feb 2009