INDIA: Air India may not hive off cargo unit

State-owned Air India is having second thoughts about turning its cargo unit into separate business unit, according to Indian media reports. The loss-making carrier had earlier announced plans to hive off its cargo business into an independent autonomous unit from 1 April this year to cater to the growing cargo market in the country. Based […]


State-owned Air India is having second thoughts about turning its cargo unit into separate business unit, according to Indian media reports. The loss-making carrier had earlier announced plans to hive off its cargo business into an independent autonomous unit from 1 April this year to cater to the growing cargo market in the country.

Based on the recommendations by consultancy firm Accenture, Air India’s parent, the National Aviation Company of India Limited (NACIL), had decided to create six Strategic Business Units (SBUs) for its low-cost operation – AI Express, the cargo airline, MRO for components and airframe, ground handling and related businesses.

Air India Cargo currently contributes around 8 per cent to the total revenues of the national carrier. The national carrier is now said to be considering other possible options.