Air India is set to launch two separate subsidiaries — one for maintenance, repair & overhaul (MRO) and the other for ground handling services — later this this year, according to the National Aviation Company of India (Nacil), theparent company of Air India.

Air India expects to generate Rs 10-15 billion (US$200-300 million) from the ground services business. State-owned Air India has already formalised a draft proposal and is likely to implement the plan next fiscal, once it is approved by the board and the Cabinet, told ET.

“Around 80 new small and big airports will come up in the country and the airline has to handle traffic and passengers in these new airports,” Air India chairman Arvind Jadhav said in an interview with The Economic Times.

Noting it would be a “huge task to control,” Jadhav said a separate subsidiarywould be able to offer better service.