EoI for sale of ground-handling arm of erstwhile national carrier Air India next fiscal

The government had last month transferred the ownership of Air India to Tata Group, after the later emerged as the winning bidder for buying the loss-making carrier.

Published: 13th February 2022 11:28 AM  |   Last Updated: 13th February 2022 11:28 AM   |  A+A-

Air India’s first-ever non-stop flight from Chicago lands at GMR Hyderabad International Airport at 1 am on Friday

Representational image (File photo| EPS)

By PTI

NEW DELHI: The government will start working on selling ground-handling arm Alliance Air of erstwhile national carrier Air India and the Expression of Interest (EoI) is expected in the next fiscal, an official said.

"We already have the Cabinet approval for selling the subsidiaries of Air India. So we will come out with an EoI inviting bids for one of the ground-handling arms in the next fiscal," an official told PTI.

Currently, four Air India subsidiaries -- Air India Air Transport Services Ltd (AIATSL), Airline Allied Services Ltd (AASL) or Alliance Air, Air India Engineering Services Ltd (AIESL) and Hotel Corporation of India Ltd (HCI) are with Air India Assets Holding Ltd (AIAHL), which is a special purpose vehicle set up in 2019 for holding non-core assets and debt of Air India.

The government had last month transferred the ownership of Air India to Tata Group, after the later emerged as the winning bidder for buying the loss-making carrier.

The official further said that it is also to be decided whether the Air India Specific Alternative Mechanism (AISAM) for Air India privatisation or the Alternative Mechanism for CPSE disinvestment would be the decision-making ministerial panel for privatising these subsidiaries.

The AISAM is headed by the Home Minister and comprises the Finance Minister, Commerce and Industry Minister and Civil Aviation Minister.

The Alternative Mechanism of CPSE disinvestment comprises Road Transport and Highways Minister, Finance Minister and Commerce and Industry Minister.

Separately, AIAHL also has over Rs 14,700 crore worth non-core assets like land and building of Air India which also has to be monetised.

These assets were transferred to AIAHL before the airline's privatisation.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp