Tata group firm Indian Hotels Company Ltd is planning to enter into a joint venture with Singapore Airlines for undertaking the latter's ground-handling activities at the major airports in India.

The move could be seen as a step towards strengthening the group's relationship with Singapore Airlines.

Confirming the development, a Tata group executive said: "IHCL along with Singapore Airlines is looking at the ground-handling business. However, talks are currently at an exploratory stage."

IHCL has a joint venture with Singapore Airlines in the air-catering sector. Taj Sats Air Catering is a 51: 49 joint venture between IHCL and Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.

At present, ground-handling is carried out by the airlines. Also, Air-India undertakes ground-handling for around 35 international carriers. It has a marketshare of 55 per cent in the ground-handling business.

Till recently, the civil aviation ministry was planning to revoke the permission given to private airlines for conducting ground-handling activities.

This would have left only Air-India, Indian Airlines and the Airports Authority of India in the business. However, protests by domestic as well as international carriers led to a rethink on the proposal.

The Tata group, through software powerhouse Tata Consultancy Services, also has interests in Aviation Software Development Consultancy, a Chennai-based company, in collaboration with Singapore Airlines.

ASDC is engaged in the development and maintenance of software for the aviation industry and also offers technical support services to Singapore Airlines.