The Hindu Business Line : Singapore team in India to assess ground handling

MODALITIES pertaining to the setting up of a joint venture between Indian Airlines (IA) and Singapore Air Terminal Services (SATS) for ground handling activity at international airports in India are expected to be finalised after a due diligence exercise being conducted by SATS gets over shortly.

The board of directors of IA has already cleared the joint venture proposal.

SATS is a wholly owned subsidiary of Singapore Airlines and offers an array of airline-centric services such as engineering support, baggage handling, etc.

According to sources, a SATS delegation is currently in India to discuss the matter with IA officials and get an overview of the ground handling equipment and facilities at the disposal of the airline.

The proposed joint venture will engage itself in ground handling activity such as handling of baggage, cleaning of aircraft, transportation of passengers from the terminal building to the aircraft, etc.

The SATS team will visit Delhi, Mumbai, Kolkata, Chennai and Hyderabad to make an overall assessment of IA's ground handling facilities.

While the migration of a section of IA's ground handling staff to the proposed joint venture is not ruled out, the SATS team is likely to take a close look at IA's agreements - contractual or otherwise - with its ground support staff.

Last year, the Government had decided that ground handling of all aircraft at international airports in India must be done by IA, Air India or Airports Authority of India.

However, scheduled private airline companies said that they had already recruited staff for the purpose and, hence, ground handling of their own aircraft should be left to them.

Subsequently, the Government conceded their demand and permitted all airline companies to form joint ventures for ground handling activity.

Thereafter, IA initiated discussions with SATS for the setting up of a joint venture for ground handling of aircraft in India.

A similar arrangement with SATS for engineering services in India is also under consideration, according to sources.