New Delhi: Air India (AI) is planning to set up a second ground handling subsidiary that will operate in all airports, except those in Hyderabad, Bangalore and New Delhi. The new subsidiary will be called Air India Air Transport Services Limited (AIATSL).
AI already has an equal ground handling joint venture with Singapore Airport Terminal Services (SATS),
Air India SATS Airport Services (AI SATS), that operates in the above three airports. The state-owned airline selected SATS as its partner in September 2008.
AIATSL will take all its staff from AI on existing terms and conditions, and will hire cheap staff when the need arises. “We have not decided on the number of staff to be shifted to the new subsidiary, as our airline does not have dedicated ground handling staff. Any call on the number of staff to be shifted will depend on the need of the subsidiary,” said a senior AI official, who did not want to be identified.
AIATSL shall share 20 per cent of its revenue from third-party business with AI in lieu of transfer of assets of the state-owned carrier to it at Re 1.
The airline, in the report vetted by Deloitte, has assumed that AIATSL will share revenue only from the fourth year of commencement of operations to address potential concerns regarding the adverse impact of proposed revenue share on its stand alone financial sustainability.
12/05/11 Surajeet Das Gupta & Mihir Mishra/Business Standard
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment