Kingfisher snaps ground-handling deal with Indian

Bangalore: Kingfisher Airlines is terminating the ground handling agreement with Indian, which it struck at the time of inception two years back.
The Vijay Mallya-led airline is ending the contract, which heralded a large outsourcing deal worth Rs 120 crore annually with Indian, as it is opting for self-ground handling, a company official said. The development comes at a time when Kingfisher Airline was looking at re-negotiating the contract, which was perceived to be an expensive affair for the airline, sources added.
Mr Mallya had earlier hinted at the re-negotiating the deal.
Sources said Kingfisher could save up to 50% having opted for self ground-handling that comprises passenger handling at the city side of the airport and aircraft handling. It also includes loading and unloading of aircraft, fuelling, cleaning and push-back facilities.
Currently full service carriers like Jet Airways, Sahara and Indian have self-ground handling operations. However Kingfisher Airline’s existing aircraft engineering and maintenance agreement that was part of the outsourcing deal with Indian will continue.
17/04/07 Urvashi Jha & Boby Kurian/Economic Times

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Categories: Kingfisher Apr 2007