A latest development indicates that the government is planning to invite interest parties to send initial documents for buying former Air India ground handling and engineering units.
Air India Disinvestment
It appears the Center is planning to complete the disinvestment of AI Airport Services (AIASL) and AI Engineering Services (AIASL) in the current financial year, according to the sources.
Further indicating that Govt plans to sell former Air India ground handling, engineering services units by fiscal end.
The process has already started as the government’s disinvestment department, DIPAM has started conducting roadshows with potential buyers to gauge interest from potential buyers.
This list includes several large players including domestic players such as Adani Group, Bird Group and Tata Group and foreign ground handling companies such as Swissport and Celebi Aviation Holding.
Moreover, the road shows are being conducted in order to incorporate feedback from industry.
This will further help when the sale proposal is made out to be mutually beneficial, sources said.
A Great Asset
When it comes to performance, both AI Airport Services (AIASL) and AI Engineering Services (AIASL) have been profitable.
They have a presence across India and a well-trained workforce, the official said.
According to the Industry executives, the government needs to be quick with respect to the deals as Air India, the biggest client of the two companies, is bound by a deal, signed by the government and Tata Sons, to take the service of AIASL and AIASL for a period of 3 years.
AIASL is a “great asset” as the company has experience across all sectors such as base maintenance, line maintenance or component overhaul services, said another industry executive.
As part of Air India’s disinvestment process, four of Air India’s former subsidiaries AI Air Airport Services, Airline Allied Services or Alliance Air, AI Engineering Services and Hotel Corporation of India along with non-core assets and other non-operating assets were transferred to a special purpose vehicle AI Asset Holdings.