Wednesday, November 28, 2018

Ministerial panel clears strategic sale of Air India subsidiary AIATSL

A ministerial panel on November 27 cleared a proposal for strategic sale of Air India's ground handling subsidiary AIATSL, an official said.

The approval comes amid the government working on ways to revive the fortunes of Air India -- estimated to have debt burden of more than Rs 50,000 crore --, including sale of non-core assets.

"The Alternative Mechanism has approved EoI (Expression of Interest) together with Preliminary Information Memorandum for Air India Air Transport Services Limited (AIATSL) sale,” an official told reporters here.

Proceeds from the sale of AIATSL would be used to pay-off part of Air India's debt.
The Alternative Mechanism on Air India disinvestment, headed by Finance Minister Arun Jaitley, has decided to proceed with strategic sale through divestment of 100 percent ownership of AIATSL, the official added.

The meeting here was attended by Jaitley and Civil Aviation Minister Suresh Prabhu, among others.

The sale would happen after transferring AIATSL to a Special Purpose Vehicle (SPV), which has already been incorporated, the official said.

The EoI document would be issued after transfer of AIATSL to the SPV.

In 2016-17, AIATSL raked in a profit of Rs 61.66 crore.