MRO,ground handling biz to absorb half of Air India staff

While the MRO business is likely to absorb almost 11,000 employees,the ground handling business — for which Air India had formed a joint venture,AISATS,with Singaporean firm SATS — will absorb another 8,000. “The move would create two separate profit centers for the airline and at the same time absorb non-core business employees.” said an executive. The proposal is part of airline’s turnaround plan.

Meanwhile,the ministry is understood to be actively resolving some outstanding issues with various stakeholders. The compensation dispute with aircraft manufacturer Boeing for the delay in delivery of 27 Dreamliner aircraft by September 2008 being one. While Air India had demanded $710 million in compensation,Boeing has committed $145 million.

In a recent meeting with Boeing representatives,Ravi categorically asked them to resolve all outstanding compensation issues at the earliest. Air India is likely to receive its first two Dreamliner in October this year followed by two in November and one in December.

The minister is pushing for a proposal regarding VVIP flying floated by the carrier,which has accumulated losses to the tune of Rs 13,300 crore. Ravi has taken up the issue of clearing Rs 450 crore VVIP flying dues,and has lent support to the airline’s proposal for charging Rs 800 crore per year from the government for operating and maintaining three aircraft deployed for VVIPs. “These three aircraft,which have been reconfigured keeping in mind the security and other requirements for VVIP flying,lie idle for the remaining period and cannot be deployed for any other purpose,” said an official,justifying the demand for annual payout.

Kingfisher and Jet,which owe Air India Rs 136 crore for undertaking their ground handling operations,have been asked to clear their dues,said the executive.