Now, Air India to split, create two arms

Agencies

Posted: Thursday, Sep 06, 2012 at 2137 hrs IST

New Delhi: Government today approved a Rs 768 crore proposal to hive off engineering and ground handling services of Air India into two wholly-owned subsidiaries as part of its turnaround plan.

A meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh, cleared the proposal to create the two subsidiaries -- Air India Engineering Services Limited (AIESL) and Air India Transport Services Limited (AITSL), an official spokesperson said.

The green signal came two years after Air India Board approved operationalisation of the two subsidiaries and submitted a note to the Civil Aviation Ministry to get the Cabinet nod. The Ministry had cleared the proposal in April this year.

With today's decision, Air India would begin the process of transferring the assets and manpower to AIESL and AITSL, which would be treated as separate profit centres.

AIESL would carry out Maintenance, Repair and Overhaul (MRO) business, not only for Air India but other airlines too and

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Source: http://financialexpress.com/news/now-air-india-to-split-create-two-arms/998890/

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