Sale process of two subsidiaries separated from Air India started, valuation of both companies 15,000 crores
Highlights
- EOI will be invited from interested bidders soon
- Air India was completely handed over to Tata in January
- Tata Group bought Air India for Rs 18,000 crore
Air India: The government has initiated the process of privatization of two subsidiaries – AIASL and AIESL – which have been spun off from Air India. An official gave this information. “The Department of Investment and Public Asset Management (DIPAM) has started meetings and road shows to ascertain the interest of investors in AIASL and AIESL. We will soon invite EOIs from interested bidders.” The government had sold debt-ridden Air India to the Tata group in October last year for Rs 18,000 crore. In this way, Air India was completely handed over to Tata in January.
Valuation of both the companies Rs 15,000 crore
However, four of Air India’s subsidiaries – Air India Airport Services Limited (AIASL), Air India Engineering Services Limited (AIESL), Alliance Air Aviation Limited (AAAL) and Hotel Corporation of India Limited (HCI) – were not part of the deal. . These subsidiaries and non-core assets worth around Rs 15,000 crore have been transferred to an SPV – Air India Assets Holding Limited (AIAHL). The government had then said that these subsidiaries and non-core assets would be sold later. In the same sequence, DIPAM organized investor meetings for the privatization of AIASL and AIESL.
Air India plans its rejuvenation
Tata Group’s airline Air India has made an ambitious plan to strengthen its international operations while capturing 30 per cent of the domestic aviation market in the next five years. At the beginning of the year, a comprehensive plan called ‘VihaanAI’ was announced to rejuvenate Air India, which had been under the control of the Tata group. It envisages a complete overhaul of the airline over the next five years with a focus on both domestic and foreign markets. Under this plan, Air India will also add 30 new aircraft to its fleet. Its emphasis will be on increasing both its network and aircraft fleet. In addition, there will be an emphasis on completely transforming Air India’s attitude towards consumers, enhancing reliability and timely operations, as well as achieving a leadership position in technology and innovation.
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