Tata-SIA Airlines Takes The Outsourcing Route

Tata-SIA Airlines Ltd, the joint venture (JV) between Tata Sons Ltd and Singapore Airlines Ltd, is pursuing an outsourcing model for its operations in India and has tied up with state-owned Air India Ltd to execute parts of the strategy before its expected takeoff in October, India’s Mint reported.

Air India will manage ground-handling and engineering services for Tata-SIA, said two executives at the national airline who spoke on condition of anonymity. “Their ground-handling and engineering checks will be done by us. For the big checks, they already have an MRO (maintenance, repair and overhaul facility) in Singapore,” one of the officials said.

The outsourcing strategy adopted by Tata-SIA sets a sort of precedent in India, where most airlines have their own staff to perform engineering checks on their fleet and for ground-handling functions. Airlines have even taken the government to court in the past for forcing them to hire external ground handlers, the business newspaper said.

Air India Engineering Services Ltd, a subsidiary of the national airline, will provide engineering services to Tata-SIA. Staff of Air India SATS Airport Service Pvt. Ltd are expected to perform ground-handling duties for the airline at major airports; Air India Air Transport Services Ltd will look after ground handling at non-metro airports.