Panel to work on Air India's ground handling proposal

A proposal to allow Air India set up joint venture firms with a leading Singaporean aviation company for ground handling and cargo operations at various airports, would take some more time for approval.

At a meeting of the Union Cabinet today it was decided to refer the matter to the Committee of Secretaries to work out details of the proposal, Science and Technology Minister Kapil Sibal told reporters here.

The proposal, mooted several months ago, suggested that Air India and Singapore Airport Terminal Services Ltd (SATS) would have a joint venture arrangement to provide ground and cargo handling facilities at Delhi, Bangalore, Hyderabad, Mumbai and some other airports across the country.

Replying to questions, he said the issue pertains to whether a single or separate joint venture firms would be set up for each airport and what the structure of the proposed joint venture firm would be.

Air India and SATS had last year floated a joint venture to handle ground handling and cargo facilities at the new Bangalore airport.

Both companies had then decided to extend their relationship to other airports as well. Air India and SATS also have plans to have JV arrangement to extend these facilities beyond the Indian shores.