The Hindu Business Line : AI arm takes up groundhandling at Kozhikode airport

AIR-INDIA Transport Services Ltd (AITSL), the 100 per cent subsidiary of Air-India set up to provide ground handling services, is slowly spreading its wings across the country.

Official sources told Business Line that AITSL has taken over the ground handling activity of the airline at Calicut Airport from August 1 this year. This is the latest in a series of airports across the country, including Amritsar and Ahmedabad, where the AI subsidiary carries out ground handling activities.

AITSL is also looking at providing services such as ramp and cabin cleaning, security services and cargo handling. The decision to hand over ground handling services to its subsidiary is not only helping AI save costs, but also focus on its core activity. "The decision to operationalise AITSL is helping Air-India save money. In the case of Kochi airport alone, the saving is about Rs 10 crore," a senior airline official said.

The airline has also drawn up a blue print to take up ground handling in other domestic airports apart from examining the prospects at greenfield airports that are due to come up soon in Bangalore and Hyderabad, the official said. The market size involving only foreign airlines operating in and out of India is estimated at more than Rs 700 crore annually. The authorised capital of AITSL is Rs 100 crore, although AI plans to slowly induct more capital into the subsidiary in tune with the requirements. During 2002-03, AITSL earned revenues of more than Rs 340 crore for AI. The airline is also looking for a joint venture partner to infuse capital, upgrade technology and introduce state of the art technology at major airports for ground handling services.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AI arm takes up groundhandling at Kozhikode airport

IA's Airbus fleet acquisition cost shoots up

SIA to begin flights from Mumbai

Global Vectra to add 11 copters to its fleet

JNPT, Mumbai port limping back to normalcy

Container vessel Arizona leaves Kochi

Ban on fishing at Gangavaram village draws flak

Kutch Rly project cost shoots up by Rs 100 cr