The Indian government has finally given Air India approval to separate its engineering and ground handling services into two wholly-owned subsidiaries – Air India Engineering Services Limited (AIESL) and Air India Transport Services Limited (AITSL) – as part of its turnaround plan.
AIESL will carry out Maintenance, Repair and Overhaul (MRO) for Air India and other airlines.
Air India will inject AIESL with Rs 375 crore in equity for capital expenditure over a period of three years. The subsidiary is projected to make profits in five years.
AITSL will receive equity worth Rs 393 crore by Air India over 12 years.