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 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.
