Delhi okays India-Singapore multi-airport ground handling deal

NATIONAL Aviation Co of India Ltd (NACIL) and Singapore Air Terminal Services (SATS) is to offer cargo and ground handling at Mumbai, New Delhi, Cochin, Chennai and Kolkata airports on a 50:50 shareholding basis following approval from the central government.

Air India, of which NACIL owns, is already offering ground handling with SATS at Hyderabad and Bangalore airports with contracts valued at INR99 million (US$1.97 million), reports India's Sind Today.

Analysts previously saw the pact as an opportunity for Air India to make use of its excess staff and increase revenues, according to a report from The Wall Street Journal LiveMint.

So far, most NACIL third party ground handling contracts are based on mandated commercial agreements approved by government policy, which has created its unchallenged position in the market. As stipulated by government policy these agreements are due to expire as of January 1.

Source: Transportweekly