A-I, IA scout for ground handling ally

The special purpose vehicle (SPV) floated by Air-India and Indian Airlines is in talks with the West Asia's Dnata and Singapore Airport Terminal Services (SATS) to bid for ground handling operations at GMR group-promoted new Hyderabad International Airport.

Earlier, Air-India and Indian Airlines, which were bidding separtely for the project, had decided to come together for the SPV.

Indian Airlines Chairman and Managing Director Vishwapati Trivedi confirmed the development adding "we are in talks with these two international majors for a possible tie up."

A senior Air-India executive said PSU airlines' combine have sent a proposal regarding this to the ministry of civil aviation (MoCA).

"Though we have not finalised the partner, the proposals have been sent to government for security clearance. This will expedite the process once we finalise the partner for the ground handling," an Indian Airlines executive said.

SATS and Dnata were shortlisted by Hyderabad International Airport besides European company Penauille Servisair, Texas-based World Flight Services, Menzsies Aviation Plc (UK), Swissport International and North American company Aircraft Service International Group (ASIG).

At present, Air-India has a market share of 55 per cent in international ground handling and Indian Airlines has 35 per cent in the domestic market.

"This move will naturally block a new player grabbing the pie of ground handling share. With this, the total ground handling revenue of both airlines is expected to touch Rs 1,100 crore," industry players pointed out.

Total revenue from ground handling operations for Air-India is at Rs 550 crore while Indian Airlines is at Rs 380 crore. Trivedi said, "Our ground handling revenue is likely to shoot up by Rs 450 crore."

To add, the consortium of Air-India and SATS has been awarded the ground handling contract at Bangalore International Airport (BIAL).