AIR INDIA SHIFTS WORKFORCE TO SUBSIDIARIES

In a move to restructure its balance sheet, cash-strapped national flag carrier Air India will shift at least one-third of its work force—around 10,000 to12,000 (out of 31,000) to two new strategic units that will take care of ground handling and engineering. Both are proposed to be hived off from the parent company as subsidiaries. These two subsidiaries will start operations immediately after the government clears the proposal. The clearance is expected by the fiscal year end in March 2011, according to two Air India executives. Air India has formed two subsidiaries—Air India Air Transport Services Ltd for ground handling