-To split off the ground handling and engineering services of Air India, Union cabinet under the chairmanship of Prime Minister Dr. Manmohan Singh approved a proposal of Rs 768 crore on 6 September 2012. Now the two units Air India Engineering Services Limited (AIESL) and Air India Transport Services Ltd. (AITSL) will be operational as two completely owned subsidiaries and treated as separate profit centers. The approval came after waiting for almost two years since; Air India board agreed for the separate operations of the two units and sent it for clearance to the Ministry Of Civil Aviation. Ministry gave its nod to the proposal in the month of April.
AIESL will be operational in line of repair, maintenance and overhaul (MRO) business for Air India only but also for airlines owned by different groups. It’s expected that the unit can bring back a potential turnover of about $ 1.5 billion MRO business in Asia Pacific. Air India that has reportedly suffered a loss of about 7,853 crore in the financial year 2011-2012 is hoping to gain a total equity infusion of Rs 30,000 Crore by 2021 under the turnaround and restructuring time devised by the government. J.R.D. Tata founded Air India and is also known as the Father of Civil Aviation in India. Air India took its first flight on 15 October 1932. Air India is known as the national flag carrier of India.