Air India is banking on new airlines in the Indian airspace to help its ground handling unit generate revenues of up to Rs 900 crore over the next three years.
“With many new airlines set to venture into India, we are confident that Air India Air Transport Services Ltd (AIATSL) would be their preferred partner for ground handling, as we have an automatic mandate to operate in any part of the country,” said S. Venkat, Director - Finance, Air India. Last September, Tata Sons announced a joint venture with Singapore Airlines to enter the Indian aviation market, with a proposal to invest $100 million in a full-service airline. Prior to that, Tata Group joined hands with Air Asia and Telestra Tradeplace to form a local low-fare airline. Malaysia’s Malindo Air is also keen to launch services from Mumbai and Ahmedabad to Kuala Lumpur.
AIATSL which was hived off as a separate entity in 2012 as part of the carrier’s turnaround strategy, had a turnover of Rs 600 crore as on March 31, 2013, Venkat said on the sidelines of a press briefing here on Monday.
Around 12,000 of AI employees were transferred to this unit two years ago.
AIATSL undertakes ground handling activities across various airports in India, apart from carrying out similar jobs for the national carrier. Aircraft ground handling is defined as the servicing of an aircraft while it is on the ground and parked at an airport’s terminal gate. Most ground services are not directly related to the actual flying of the aircraft, and instead involve other taskssuch as cabin service, catering, ramp services and services inside the airport terminal.
At present, AIATSL provides ground handling services to more than 20 carriers with flight operations in India, said Venkat.
Separately, Venkat said Air India may have to exit from routes that are not profitable. “All routes where we are not able to cover our variable costs will have to be reviewed,” he added.
Annual loss The national carrier is expected to pare its annual loss to Rs 3,900 crore for 2013-14 from Rs 5,200 crore in the year before.
adith.charlie@thehindu.co.in