In a bid to consolidate its leadership position in the Rs 3,000-crore airport ground-handling services sector, the board of National Aviation Company of India Limited (NACIL) — which operates national carrier Air India — has approved a proposal to provide ground-handling at four major airports through a joint venture agreement with Singapore Airlines arm, Singapore Air Terminal Services (SATS). This JV will provide ground handling and cargo services at the country’s premier airports in Mumbai, Delhi, Chennai and Kolkata.
Speaking to The Indian Express, an Air India spokesperson said the idea behind the move is to exploit the company’s core competencies and explore business opportunities.
According to a senior NACIL official, the airline which earns over Rs 700 crore annually by providing ground-handling services to international carriers is all set to expand its base in the segment. NACIL has also been providing ground-handling services at the new Hyderabad and Bangalore airports under a joint venture agreement with SATS.
The new ground-handling regulations of the civil aviation ministry that will come into effect in January 2009 allow for only three service providers at the country’s six major international airports. Among them, one slot has already been fixed for the state run carrier or a joint venture company formed by it. The other two slots belong to either the Airport Authority of India (AAI) or the airport’s private developer in the case of Mumbai and Delhi airports which can be auctioned in a bidding process to a third party ground-handling agency.