MRO, ground handling biz to absorb half of Air India staff

New Delhi: Air India is likely to see almost half of its work force of 40,000 absorbed in its two subsidiaries (Maintenance, Repair and Overhaul (MRO) business and ground handling) which may be hived off in two months.
“The proposal for hiving off MRO and ground handling business has been prepared and is awaiting civil aviation minister Vayalar Ravi’s clearance. By month-end, it is likely to be sent to the Cabinet Secretariat to be included in the next Cabinet meeting’s agenda,” a top airline official told The Indian Express.
While the MRO business is likely to absorb almost 11,000 employees, the ground handling business — for which Air India had formed a joint venture, AISATS, with Singaporean firm SATS — will absorb another 8,000. “The move would create two separate profit centers for the airline and at the same time absorb non-core business employees.” said an executive. The proposal is part of airline’s turnaround plan.
Meanwhile, the ministry is understood to be actively resolving some outstanding issues with various stakeholders. The compensation dispute with aircraft manufacturer Boeing for the delay in delivery of 27 Dreamliner aircraft by September 2008 being one. While Air India had demanded $710 million in compensation, Boeing has committed $145 million.
23/04/11 Smita Aggarwal/Indian Express

To Read the News in full at Source, Click the Headline

Categories: Air India Apr 2011