Date:12/01/2003 URL: http://www.thehindu.com/2003/01/12/stories/2003011202351100.htm

Business

AI to hive off ground handling

By Our Special Correspondent

NEW DELHI JAN. 11. The Air India Board today cleared a proposal to hive off the airline's ground handling services into a company.

At its meeting, the carrier decided to create a company to provide the services to other airlines at competitive rates while improving the quality.

Following the board's clearance, the airline would now take clearances on legal and financial processes involved.

At present, Indian Airlines and Air India provide ground handling services to various carriers, including foreign airlines at Indian airports.

Both the airlines between them earn about Rs. 400 crores by providing these ground handling services at various airports.

The separation of ground handling services would help Air India to become leaner and improve its aircraft-employee ratio, which is about 650 to 700 employees to an aircraft.