New Delhi, June 28: The Indian Airlines board approved a proposal to set up a wholly-owned subsidiary to undertake airport handling and allied services. The IA board also decided to extend the duration of Voluntary Retirement Scheme by two months beyond July 17, 2003, according to a press statement issued on Friday.

It said the IA board also constituted a committee to assess and finalise requirements of taking additional aircraft on lease for expanding operations.
The board was informed of the re-appointment of New India Assurance to manage IA's ensuing aircraft insurance renewals.
When contacted, airline sources said the subsidiary would provide ground handling services to its own flights as well as those of other domestic and foreign carriers. Bureau Report