Air India joint venture won’t employ its surplus staff

Air India-Singapore Airport Terminal Services (AISATS), the ground handling arm of the state-owned carrier, will hire 90 per cent of its workforce on contract to start operations at the new terminal of the Delhi airport, according to a senior Air India (AI) official.
AISATS is a 50:50 profit sharing joint venture between AI and the Singapore-based company. The airline selected SATS as its partner in September 2008.
“AISATS will hire 90 per cent of their people on contract and will take the rest from Air India. Hiring employees on contract is 50 per cent cheaper for the subsidiary than taking them from Air India,” said the official on condition of anonymity.
The joint venture operates at Bangalore and Hyderabad airports, with a staff strength of around 1,500, and will start operations at the Delhi airport after the new terminal comes into existence. It is to handle flights of Air India, Singapore Airlines, Malaysia Airlines, Thai Airways, Emirates and Dragon Air, totalling 203 flights per week.
Currently, 300 people do ground handling for Air India and they will be adjusted in various other departments of the airline.
12/06/10 Mihir Mishra/Business Standard