As the government proceeds towards its plan to divest stake in Air India, it has cancelled the proposed divestment of Air India Transport Services Limited (AIATSL), the profitmaking ground-handling subsidiary.
Sources in the know say that the cancellation is just a procedure to start the sale of the ground-handling subsidiary afresh. “With updated numbers, the bid document will be issued soon. This will not impact the current divestment process of Air India,” said the source, who did not want to be identified.
The government has issued documents to divest 100% stake in Air India, Air India Express and 50% of Air India’s stake in ground handling company AI Singapore Terminal Services Ltd (AISATS). The last date for submission of bids are March 17, 2020, and the government expects to find takers for the entity this time, unlike a failed attempt in 2018.
AIATSL is a fully-owned subsidiary of Air India that is into ground-handling services that include baggage, cargo handling and all other services provided to airlines on the ground. The subsidiary is a profit making company and the government plans to sell these subsidiaries to repay the debt of Air India, which the government has taken on its books.
