Singapore Airport Terminal Services (SATS) and Air India have signed an agreement to form a single 50:50 joint venture (JV) company that would serve as the vehicle to house their three existing ground and cargo handling JVs in Bangalore and Hyderabad. To be named Air India SATS Airport Services Private Limited (AISATS), the JV company is in the process of being incorporated in New Delhi.

In September 2008, SATS was chosen by Air India as its JV partner for ground handling in India. Prior to that, both companies have already collaborated in Hyderabad and Bangalore under three separate JVs, providing ground and cargo handling services since the opening of the new airports in March and May 2008 respectively. However, the incorporation of these JVs was held back, pending Air India’s plans to select a strategic ground handling partner at the other metro airports in India, like Delhi and Mumbai where world class ground handling is required.

The incorporation of AISATS, which is expected to be completed next month, will provide a legal entity to house the existing operations in Bangalore and Hyderabad and potential operations in other metro airports. Air India and SATS will each nominate three representatives as Board members of AISATS.

Meanwhile at Changi Airport SATS has been granted a technical ramp licence by the Changi Airport Group. This licence will enable SATS to expand its comprehensive suite of ground handling services to include technical ramp services starting from 1 May 2010. The scope of technical ramp services will encompass the receiving and dispatching of aircraft which covers marshalling and parking, aircraft pushback/towing, aircraft exterior cleaning as well as the provision of ground power and cooling units.