A-I, IA may join hands to bid for ground operations

State-owned carriers Air India and Indian Airlines are planning to float a joint venture to bid for ground handling operations at the GMR Group-promoted Hyderabad International Airport.

Air-India and Indian Airlines are likely to float a special purpose vehicle with an overseas ground handling major for the purpose. The GMR Group had earlier shortlisted Air-India and Indian Airlines for carrying out ground handling operations at the Hyderabad airport.

Indian Airlines Chairman and Managing Director Vishwapati Trivedi said, "We are discussing the possibility of coming together for bidding jointly at Hyderabad International Airport."

Air-India chairman & managing director Vasudevan Thulasidas said, "The joint venture will also rope in a foreign player for ground handling, as per the specifications of the GMR Group."

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

"If it works out, the total ground handling revenues of the airlines are expected to touch Rs 1,100 crore (RS 11 billion)," industry players pointed out.

Air India's total revenue from ground handling operations stood at Rs 550 crore (Rs 5.5 billion), while it was Rs 380 crore (Rs 3.8 billion) for Indian Airlines. Trivedi said, "Our ground handling revenues are likely to shoot up by Rs 450 crore (Rs 4.5 billion)."

Sources said the new entity would approach overseas ground handling majors that had already been shortlisted for category I of the Hyderabad airport. Out of two categories, category I is for ground handling companies and the second one for airlines.

The overseas majors shortlisted include European company Penauille Servisair, Texas-based World Flight Services, Menzsies Aviation Plc (UK), Swissport International, Singapore Airport Terminal Services, Middle East company Dnata, and North American company Aircraft Service International Group.

A consortium of Air-India and SATS has been awarded the ground handling contract for Bangalore International Airport.