A-I proposes to float IT subsidiary

AVIATION INDUSTRY SPREADS WINGS WIDE

Infotech wing will be formed after merger with Indian.

Air-India (A-I) is planning to float an information technology (IT) services company, jointly with a private sector player, to handle the comprehensive range of solutions for inhouse and customer-related functions.

"There is strong possibility of forming an IT services company after the proposed AI and Indian merger. The project could have a private partner," said Vasudevan Thulasidas, chairman and managing director, A-I.

He said the idea was in conceptual stage and nothing had been finalised. A-I's move is in line with the German aviation major Lufthansa, which also has an IT service.

"The proposed IT services wing will handle the entire back-end operations of A-I. This will also meet all IT requirement of airline, passengers, distribution system, engineering and other customers," sources said.

According to analysts, the initiative of forming different wings under A-I assumes significance in the context of the proposed merger of A-I and Indian.

"A separate company can meet almost all the requirements of merged entity's fleet. This will also give the company complete control over its operations and it will be in a better position to counter competition with all services under one roof," they pointed out.

They said the merged entity would have domestic and international operations along with a low-cost and low-fare subsidiary catering to domestic and international routes.

A-I is also planning to start a dedicated ground handling and engineering company.

The airline has also firmed up plans to launch air cargo wing by converting two A310 aircraft into freighter planes and to dry lease two cargo planes.