Ministerial panel clears strategic sale of Air India subsidiary AIATSL

By: |
November 27, 2018 9:59 PM

A ministerial panel Tuesday cleared a proposal for strategic sale of Air India's ground handling subsidiary AIATSL, an official said.

In 2016-17, AIATSL raked in a profit of Rs 61.66 crore.

A ministerial panel Tuesday cleared a proposal for strategic sale of Air India’s ground handling subsidiary AIATSL, an official said. The approval comes amid the government working on ways to revive the fortunes of Air India — estimated to have debt burden of more than Rs 50,000 crore –, including sale of non-core assets. “The Alternative Mechanism has approved EoI (Expression of Interest) together with Preliminary Information Memorandum for Air India Air Transport Services Limited (AIATSL) sale,” an official told reporters here. Proceeds from the sale of AIATSL would be used to pay-off part of Air India’s debt.

The Alternative Mechanism on Air India disinvestment, headed by Finance Minister Arun Jaitley, has decided to proceed with strategic sale through divestment of 100 per cent ownership of AIATSL, the official added. The meeting here was attended by Jaitley and Civil Aviation Minister Suresh Prabhu, among others. The sale would happen after transferring AIATSL to a Special Purpose Vehicle (SPV), which has already been incorporated, the official said. The EoI document would be issued after transfer of AIATSL to the SPV. In 2016-17, AIATSL raked in a profit of Rs 61.66 crore.

AIATSL was incorporated in June 2003 with the objective of carrying out the business of providing all types of services at airport. Industrial and business operations of AIATSL include rendering airport ground handling services such as those pertaining to passenger, ramp, security and cargo for Air India. The latest strategic sale plan follows the decision by the ministerial panel in June to make Air India competitive, by way of cutting down debt and raising resources by selling land assets and other subsidiaries. The ministerial grouping had decided to revive Air India after the government’s strategic stake sale offer failed to attract any bidders earlier this year. The government had originally proposed to offload 76 per cent stake in the national carrier as well as transfer the management control to private players.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Need assurance that SAIL’s iron ore division won’t be moved out of Kolkata: West Bengal finance minister Amit Mitra
2Srei Equipment Finance gets Rs 2,200-crore investment interest from Singapore’s Makara
3Seed industry cries foul over rising sales of ‘unapproved’ HTBt cotton