Air India Engineering Services Limited (AIESL), which was hived off a year ago, will turn a lucrative arm of Air India by 2017. “AIESL was hived off to create a profit-making entity which is not bogged down by the challenges faced by the parent airline”, a senior official of the national carrier told FE.
By current calculations, the subsidiary should break even within two financial years, and turn in a profit in 2016-17. The strategy is to broad-base the services of the maintenance, repair, overhaul (MRO) unit, which now exclusively serves Air India, by taking up contracts from other major domestic and international carriers.
The MRO unit services a fleet of 125 aircraft of Air India. It has recently been approved by civil aviation regulators abroad to certify airlines like Etihad Airways, Qatar Airways, Mihin Lanka, Silk Air, Singapore Airlines and Sri Lankan Airlines.
The official said AIESL, which expects revenues in excess of R500 crore this year, aims to ratchet up the top line to R800-900 crore by FY17.
In the recent past, various foreign airlines, especially the Middle Eastern carriers like Etihad, Emirates, and Qatar Airways, have increased their flight frequencies to India. In addition, the entry of Air India into the 27-member Star Alliance is expected to mount more such flights into the country.
03/02/15 Rhik Kundu/Financial Express
By current calculations, the subsidiary should break even within two financial years, and turn in a profit in 2016-17. The strategy is to broad-base the services of the maintenance, repair, overhaul (MRO) unit, which now exclusively serves Air India, by taking up contracts from other major domestic and international carriers.
The MRO unit services a fleet of 125 aircraft of Air India. It has recently been approved by civil aviation regulators abroad to certify airlines like Etihad Airways, Qatar Airways, Mihin Lanka, Silk Air, Singapore Airlines and Sri Lankan Airlines.
The official said AIESL, which expects revenues in excess of R500 crore this year, aims to ratchet up the top line to R800-900 crore by FY17.
In the recent past, various foreign airlines, especially the Middle Eastern carriers like Etihad, Emirates, and Qatar Airways, have increased their flight frequencies to India. In addition, the entry of Air India into the 27-member Star Alliance is expected to mount more such flights into the country.
03/02/15 Rhik Kundu/Financial Express
No comments:
Post a Comment