Air India looking at Rs 2000-cr revenue from engineering unit

Mumbai: Air India expects to earn Rs 2,000-2,500 crore a year from its engineering business unit and and Rs 1,500 crore from its cargo unit, said Mr Arvind Jadhav, Chairman and Managing Director, National Aviation Company of India Ltd (NACIL).
The national carrier, which has embarked on various cost reduction measures, expects from this a net benefit of Rs 378 crore during the winter schedule (2009) and Rs 563 crore for the entire year, he said.
With respect to its proposed SBU for engineering, the airline is planning to shift 8,000 engineers from its mainstream operations to this unit that is expected to be in place by April, said Mr Jadhav, at a news conference on Saturday. The cargo operations will also soon be spun off into a separate business unit.
These plans will help in better utilisation of the company's existing workforce.
Although Air India currently does third party engineering work, this does not account for any large revenues; and its engineers mostly undertake in-house maintenance work, said Mr Jadhav. Since the company has the know-how for aircraft maintenance and repair overhaul (MRO), the idea is to eventually spin that activity off into a subsidiary company and get a proper revenue stream in place, he added.
02/01/10 BusinessLine

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Categories: NACIL Jan 2010