Airports Authority of India has created a wholly owned subsidiary AAI Cargo Logistics and Allied Services Company Ltd (AAICLAS).

The new entity has been set up with a vision to become one of the foremost integrated logistics network operators in the country with the primary focus on handling air cargo and allied services.

The subsidiary, though owned by AAI, will be functionally and administratively independent. It will provide ground handling, documentation, transport services for carriage of bonded and non-bonded cargo and screening services and related value added services at airports in India and abroad, AAICLAS said in a statement. All the activities currently being carried out by the AAI cargo department will be merged with the new entity.

Speaking at the unveiling of the new entity here late on Tuesday evening, RN Choubey, Secretary, Civil Aviation, said the new company hopes to achieve a turnover of around ₹380 crore in the next one and half to two years. “We are anticipating some hiccups (for AAICLAS) as it will be difficult to get general cargo users to shift,” Choubey said adding that the new entity will try to woo cargo users currently using the Railways and the road network as potential new clients.

Good opportunity Terming the new entity as a “fantastic opportunity” which had been “long in coming (to fruition),” Choubey pointed out that AAI practically owned all airports in the country except for four-to-five. Apart from airports in Delhi, Mumbai, Hyderabad and Bengaluru, AAI owns over 100 airports around the country.

AAI is a partner in running the airports in major metros which have been given to the private sector in a public-private partnership model.

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