Mumbai: As part of its turnaround plan, Air India will hive off two of its subsidiaries from tomorrow, an official said here yesterday. The national carrier’s ground handling and maintenance, repair and overhaul will be operated as separate profit centres from February 1.
Under this, Air India Air Transport Services Ltd. (AIATSL) will take over ground handling at airports and expand its operations to other carriers while performing the same jobs for Air India. Similarly, Air India Engineering Services Ltd. (AIESL) will take undertake engineering maintenance, repair and overhauls activities for Air India and offer the same to other carriers.
The proposal was approved by the Cabinet Committee on Economic Affairs following which the Air India decided to hive off the two subsidiaries.
Accordingly, all employees working in the ground handling and maintenance, repair and overhaul facilities would be deputed to these two independent companies with service conditions, emoluments and perks remaining unchanged.
AIATSL was formed in 2003 and AIESL the following year. The functions included passenger handling ramp, security and cargo handling for Air India.
IANS
