AIRINDIA SATS, AI ink JV agreement on ground, cargo handling

New Delhi, Apr 17 (PTI) Air India and Singapore
Airport Terminal Services (SATS) have signed an agreement to
form a 50:50 joint venture company for their three existing
ground and cargo handling JVs in southern Indian cities of
Bangalore and Hyderabad.
The agreement, signed in Singapore yesterday, would be
named Air India SATS Airport Services Private Limited (AISATS)
and the JV company is in the process of being incorporated in
Delhi soon, an Air India spokesperson said here.
The incorporation of AISATS, which is expected to be
completed next month, would provide a legal entity to house
the existing operations in Bangalore and Hyderabad and
potential operations in other metro airports.
Air India and SATS will each nominate three
representatives as Board members of AISATS, he said.
Government had on March 29 approved a specific JV
firm, Air India SATS Airport Services Bangalore, to provide
ground and cargo handling services at the Bangalore airport to
enable the company issue shares to raise resources.
The Bangalore project estimated at about Rs 172 crore,
comprises Rs 99 crore for cargo handling project at the new
Bangalore airport and about Rs 73 crore for the ground
handling venture.
In September 2008, Air India chose SATS as its JV
partner for ground handling in India and both companies
collaborated in Hyderabad and Bangalore under three separate
JVs, providing ground and cargo handling services since the
opening of the new airports at these two cities in 2008.
However, the incorporation of these JVs was held back,
pending Air India's plans to select a strategic ground
handling partner at other metro airports in India, like Delhi
and Mumbai where world-class ground handling is required.
In a statement, AI CMD Arvind Jadhav said, "Combining
our knowledge of the market and the strengths SATS has built
from its over 60 years of experience, we are confident that
this JV will gain superior capabilities and competitiveness".
SATS President and CEO Clement Woon said, "Our
successful cooperation with Air India in Hyderabad and
Bangalore has demonstrated the vast synergies that our
partnership can potentially reap".
"We seek to deepen our participation in the
privatisation of India's aviation sector and contribute to the
growth of the industry", Woon added.
SATS has been providing comprehensive airport services
encompassing air freight handling, passenger services, ramp
handling, baggage handling, aviation security, aircraft
interior cleaning.
It also provides food solutions like airline catering,
food distribution and logistics, industrial catering, chilled
and frozen food manufacturing as well as airline linen
laundry. PTI ARC
DDC