National carrier Air India and Singapore Airport Terminal Services (SATS) have announced signing an agreement to form a 50:50 joint venture (JV) company that would serve as the vehicle to house their three existing ground and cargo handling joint ventures in Bangalore and Hyderabad.
To be named Air India SATS Airport Services Private Limited (AISATS), the JV company is in the process of being incorporated in Delhi.
In September 2008, Air India chose SATS as its JV partner for ground handling in India. Prior to that, both companies have already collaborated in Hyderabad and Bangalore under three separate JVs.
However, the incorporation of these JVs was held back at the time, pending finalisation of Air India’s plans to select a strategic ground handling partner at other metros.
The incorporation of AISATS, which would complete next month, will provide a legal entity to house the existing operations in Bangalore and Hyderabad and potential operations in other metro airports.