Air India’s ground-handling JV by September

After numerous hiccups, Air India is likely to finalise the ground-handling joint venture with Singapore Air Terminal Services’ (SATS) subsidiary by September this year, according to a top official.
The JV, in which National Aviation Company of India Limited or Nacil has 50 per cent stake, is slated to be one of the three mandatory ground-handling service providers at the six metro airports of Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad, and any greenfield airport that comes up in future.
Air India has been trying to sort out the matters and operationalise the agreement well before the new ground-handling policy takes effect in December this year. The joint venture had run into trouble after SATS insisted that Nacil should sign the JV agreement with its newly formed subsidiary SATS Investments Pvt Ltd. It had a capitalisation of just $2, which had also posed a problem. “The issue of capitalisation has been resolved as they have been asked to put in half a million dollars,” said a senior official.
Earlier, in February the Cabinet had given the go-ahead to Nacil to form a JV with SATS.
18/07/09 Smita Aggarwal/Indian Express

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Categories: Airports Jul 2009, Foreign Jul 2009, NACIL Jul 2009