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Journalism of Courage
The Cabinet today approved Air Indias (AIs) proposal to split engineering and ground handling services of Air India into two fully-owned subsidiaries.
After the approval,Air India will form two subsidiaries· Air India Engineering Services Limited (AIESL) and Air India Transport Services Limited (AITSL). The formation of profit-making units and shifting of staff are key components of the turnaround plan.
These units will look for business from outside and provide services to Air India at cheaper rates.
The ground handling subsidiary will take 7,465 people and 10,481 people will be shifted to the engineering subsidiary without any change in terms and conditions. The move will also shift a wage bill of Rs 931 crore to the engineering wing and over Rs 600 crore to the ground handling wing and will bring down the total number of employees by around 18,000 from 27,000 now. At present,the annual wage bill of Air India is over Rs 3,100 crore.
