A-I inks ground handling pact with 2 US airlines

National flag carrier Air-India has entered into a ground handling agreement with US-based Continental Airlines and American Airlines. Both the airlines had recently started non-stop operations between India and US.

They operate seven flights a week each with 777-200 ER aircraft. The world's largest airline company American Airlines is operating its daily transatlantic non-stop flights between New Delhi and Chicago while Continental Airlines is operating daily non stop flight between New Delhi and New York.

A senior Air-India executive confirmed the development but declined to divulge more details. Also, the sources were non committal on the details of the revenue earned through ground handling for these US-based airlines.

However, the national flag carrier is likely to register Rs 500 crore as ground handling revenue during the financial year against Rs 460 crore.

At present, Air-India is undertaking ground handling activities for more than 50 international airlines.

Meanwhile, the airline's ground handling subsidiary Air-India Air Transport Services Ltd (AIATSL) has also commenced comprehensive ground handling operations at Pune. Incorporated in June 2003, AIATSL was set up to cater various ground handling requirements of customer airlines.

"AIATSL handles activities at Kozhikode, Ahmedabad, Amritsar, Pune and will gradually take over ground handling assignments of other cities and metros," said Air-India sources.

Indian Airlines is currently undertaking the operations in Hyderabad. Sources said A-I will have substantial cost advantage by AIATSL taking over all ground handling assignments.

"The company is earning an yearly revenue of Rs 12 crore from Kozhikode alone. Similar savings have been forecast at other cities and metros after having own set up," they added.

With all handling units being brought under AIATSL in a progressive manner, better coordination and control will result in meeting the needs of the customers to a large extent," they added.

AIATSL is offering ground handling services as per International Air Transport Association standards to all Air India flights and customer airlines operating through Indian international Airports.

With a holding of over 4300 motorized and towable ramp equipments valued at Rs 180 crore, the company has provided ground services to approximately 25,000 customer airlines flights and 25,000 Air India flights during 2004-2005.