Two AI subsidiaries to function from Feb 1
The operationalisation of the Air India Transport Services Limited (AITSL), which would carry out ground handling activities, and Air India Engineering Services Limited (AIESL) that would be responsible for maintenance, repair and overhaul activities, would slash Air India’s aircraft to manpower ratio by more than half.
Air India would provide AIESL Rs 375 crore as capital expenditure over three years beginning now, while it would give Rs 393 crore over 12 years from this year to AITSL, airline sources said.
The proposal to hive off the engineering and ground handling departments of Air India to two wholly-owned subsidiaries was approved on April 12 last year by the Cabinet Committee on Economic Affairs as part of the airline’s turnaround and financial restructuring plans.
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