Air India (AI, Delhi International) is considering setting up a groundhandling subsidiary that would not only service Air India's aircraft but also third party carriers, according to a report in India's Economic Times.

As recently reported in ch-aviation, Air India was left without substantial groundhandling capabilities when the Indian government hived off the existing subsidiary, Air India Air Transport Services (AIASL), shortly before it sold Air India to Tata Sons in early 2022. Air India CEO Campbell Wilson recently described finding out his newly acquired airline came without a groundhandling unit as a "negative surprise." The Indian government now intends to sell the profitable AIASL, reportedly aiming for between INR7 billion (USD85 million) and INR8 billion (USD97 million). One scenario Air India is canvassing is buying the entity.

"That is the way forward discussed within the top management," sources familiar with the Air India talks said. "Airport services and ground handling are also a critical consumer-facing role adding to the overall consumer experience in addition to the one inside the aircraft."

Air India currently relies on a groundhandling agreement with Singapore-based SATS Airport Services. However, groundhandling capacity constraints have reportedly been causing problems for Air India, which according to Wilson, is attempting to embark on the biggest aviation turnaround in history.