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 […]
April 1, 2010
Based on the recommendations by consultancy firm Accenture, Air IndiaÃ¢â‚¬™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.