AI may not turn its cargo unit into separate business unit

Mumbai: Air India may shelve its plans to hive off its cargo business as a seperate entity and is likely to take a final call on the issue shortly, airline sources said on Friday.
The airline management was considering options that instead of setting up an independent subsidiary business unit and creating seperate book of accounts, cargo should remain a unit within the NACIL, the sources said.
Besides, there was an entire range of tax issues involved in case NACIL decided to convert its cargo unit into a separate company, the sources said, but added that a final call on the issue was expected to be taken shortly.
The state-run airline had earlier announced plans to hive off its cargo business into an independent autonomous unit from April 1 this year to cater to the growing cargo market in the country.
Based on the recommendations by consultancy firm Accenture, NACIL had decided to create six Strategic Business Units (SBUs) for its low-cost operation -- AI Express, the cargo airline, MRO for components and airframe, ground handling and related businesses.
26/03/10 PTI/Economic Times

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Categories: Cargo Mar 2010, NACIL Mar 2010