Thursday, October 18, 2018

Revival plan: Air India suggest govt to sell Air India Express & SATS first

Air India has recommended to the government that its low-cost subsidiary and ground-handling unit be sold to improve the national carrier’s financial position in what could be a precursor to its eventual divestment.
This follows a failed plan to sell the debt-laden, state-owned airline earlier this year. The report suggests that Air India Express and Air India-SATS, which were previously meant to be sold with Air India, be put up for sale along with the engineering division and another ground-handling business, said a senior aviation ministry official.
The recommendations on improving Air India are currently being discussed at various levels in the ministry, he said. “The report mentions various ways to improve Air India — both financially and operationally,” he said. “The report is being discussed in the aviation ministry and will be forwarded to the finance ministry for further action.” The report was submitted by Air India chairman Pradeep Singh Kharola to the aviation ministry last week.
The government had sought to sell both units along with a 76 per cent stake in Air India in May. While AI Express is fully owned by Air India, the national carrier owns 50 per cent in AI-SATS and the rest is held by Singapore Airport Terminal Services (SATS).
18/10/18 Mihir Mishra/Economic Times

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