AAI launches air cargo, logistics subsidiary

Airports Authority of India (AAI) on Tuesday launched an air cargo and logistics subsidiary, which is projected to rake in annual turnover of Rs 380 crore in two years.

Announcing the launch of the AAI Cargo and Logistics Allied Services Company Ltd (AAICLAS), Civil Aviation Minister Ashok Gajapathi Raju said the country is now a step closer to becoming a world class destination in cargo and logistics services.

Neera Rawat would be the Managing Director while B K Mehrotra would be the Chief Executive Officer of AAICLAS.

Raju said that making India a world class destination in cargo and logistics services is his dream. "With the launch of AAICLAS today, we are a step closer," he added.

Participating at the launch ceremony, Civil Aviation Secretary R N Choubey said AAICLAS expects to have "an annual turnover of Rs 380 crore in two years time".

AAI Chairman Guruprasad Mohapatra said its cargo department has been de-merged and corporatised into a functionally & administratively independent organisation.

"It is envisioned to make this company as one of the foremost multi modal logistics company in India with primary focus on air cargo handling and allied services.

"It would be covering all the entire gamut of cargo and air cargo handling and related value added services including ground handling services and security services for securing of cargo," he said.

Mohapatra also noted that the company would enter into strategic partnerships based on business demand at airports within the country or abroad.

According to an AAI official, the new subsidiary has an equity base of Rs 20 crore.