Tata Group to set up Air India's new ground handling business: Report

Tata Sons is likely to come up with an Air India ground-handling services company to cater to the airline's increasing in-house needs as well as provide shared services to other carriers, a report in the Economic Times (ET) said. The plan may also include putting Air India's earlier ground-handling entity, Air India Air Transport Services (AIASL). 

The Centre had put AIASL on the block before it sold Air India to the Tatas. 

Moreover, the new company may also include an aviation training academy. It was announced in December 2022 as a part of the organisational revamp.  

"That is the way forward discussed within the top management. Airport services and ground handling are also a critical consumer-facing role adding to the overall consumer experience in addition to the one inside the aircraft," an official aware of the discussions told ET.

The plan is likely to be introduced once the airline's deal to purchase aircraft goes forward. The report added that the airline will soon have more home-grown pilots, engineers, cabin crew, airport managers and other specialists. 

"This is another ambitious plan that will take a big focus once the initial set of critical Air India operational needs is taken care of," the official said.

The airline is undergoing a massive transformation. It is buying new aircraft, improving the quality of services and ensuring timely flights. However, problems related to old aircraft have continued to resurface. Even on Monday, Air India had to cancel a few flights due to issues with aircraft swapping. 

Currently, Air India operates its services joint venture with Singapore-based SATS Airport Services called AI SATS.