Monday, July 31, 2017

Talks begin to divest AI arm

New Delhi: Informal talks have begun to find potential buyers for Air India’s subsidiaries, including its maintenance, repair and overhaul (MRO) business — Air India Engineering Services Limited (AIESL) — even as airlines wait for clarity on the Centre’s next step on divesting its stake in indebted national carrier, Air India.

An expression of interest from India’s oldest private sector MRO service provider, Air Works, has come as a shot in the arm for the Centre that is considering an option to split Air India’s different businesses and hive them off separately.

“Air Works has expressed an interest in acquiring a stake in AIESL which has the largest MRO business in the country with a facility for component and engine overhaul,” sources aware of the development said.

The government believes divesting Air India’s ground-handling, MRO and airline operations separately would make the deal more attractive for private players, Civil Aviation Ministry sources said. The Centre has already received a formal expression of interest from the country’s largest private carrier IndiGo for Air India’s airline operations.
31/07/17 Somesh Jha/The Hindu