AI stake sale decision to be a fast one, hints FM
30 Aug 2017 9:54 PM IST
New Delhi: Finance Minister Arun Jaitley on Wednesday indicated that an expeditious decision would be taken on Air India disinvestment, with at least two parties having formally expressed interest in buying stake in the national carrier.
A group of ministers, headed by Jaitley, is working on the modalities of the strategic disinvestment of debt-laden Air India, which has been making losses for long.
"These decisions are to be taken expeditiously but in their normal course," Jaitley told reporters in response to a query about the Air India stake sale process.
The Union Cabinet had in June given in-principle approval for strategic disinvestment of the carrier and its five subsidiaries.
Surviving on taxpayers' money, the airline has been in the red for long and various proposals, including government think tank Niti Aayog's suggestion for complete privatisation, have been made.
The airline has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012. On June 28, the Union cabinet gave its in-principle approval to divestment its stake in Air India.
Subsequently, a ministerial group was formed to look into the modalities of Air India's divestment process – Air India-specific Alternative Mechanism – and is being headed by Finance Minister Arun Jaitley.
Bird Group shows interest in Air India ground handling unit
New Delhi: Aviation industry major Bird Group on Wednesday said that it has expressed its interest in buying Air India's ground handling subsidiary.
"We have sent a letter to the Ministry of Civil Aviation evincing our interest in buying the Air India Air Transport Services Limited (AIATSL)," an authorised spokesperson of the company said.
"We have also suggested to the government to consider selling the subsidiaries separately, so as to get the maximum capital out of the sale, so that the proceeds can be used to pay off the massive debt accumulated by the airline." According to the spokesperson, AIATSL is a "natural choice" for the company which is also engaged in providing ground handling services.
Bird Group was founded in 1971 with interest in travel technology, ground handling, aviation, hospitality, luxury retail and education services.
At present, it offers ground handling services at seven domestic airports.
The Bird Group's interest in AIATSL was disclosed by Civil Aviation Secretary R.N. Choubey on the sidelines of an industry event held here on Wednesday.
Currently, Air India's portfolio of subsidiaries include Air India Engineering Services, Air India Transport Services, Alliance Air, Air India Express and the Hotel Corporation of India. It also has a ground handling joint venture AISATS. The airline had posted an operating profit of Rs 105 crore in 2015-16.
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