Two AI subsidiaries to function from Feb 1

Ground handling activities and maintenance and repair of all Air India aircraft would be carried out by two new subsidiaries of the national carrier when they become operational from February 1.

The operationalisation of the Air India Transport Services Limited (AITSL), which would carry out ground handling activities, and Air India Engineering Services Limited (AIESL) that would be responsible for maintenance, repair and overhaul activities, would slash Air India's aircraft to manpower ratio by more than half.

Air India would provide AIESL Rs 375 crore as capital expenditure over three years beginning now, while it would give Rs 393 crore over 12 years from this year to AITSL, airline sources said.

The proposal to hive off the engineering and ground handling departments of Air India to two wholly-owned subsidiaries was approved on April 12 last year by the Cabinet Committee on Economic Affairs as part of the airline's turnaround and financial restructuring plans.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus