New Delhi, June 29: In a controversial move, the Indian Airlines (IA) board today decided to hive off its engineering division into a joint venture with private partners.

The move had sparked a wild-cat strike last October in the airlines’ engineering wing when news first spread that Singapore Airlines had proposed such a venture.

A memorandum of understanding to study “the feasibility of such a venture” was also reportedly signed between IA and a Singapore Airlines subsidiary, SIA Engineering Company.

Sources said the proposal made by Singapore Airlines had involved setting up an aircraft maintenance and overhaul facility at multiple locations in India.

The joint venture was to provide engineering and overhaul facilities to all domestic and global airlines.

Indian Airlines is already providing such facilities to all domestic airlines and several global airlines, including Silk Air, SIA’s sister concern.