Wednesday, February 12, 2020

Government likely to invite fresh bids for Air India Air Transport Services by March

After a lukewarm response to the first divestment attempt of AIATSL, the Narendra Modi government is likely to invite fresh bids for the profit-making subsidiary of Air India within the current financial year which ends on March 31, sources aware of the development told CNBC-TV18.

AIATSL or Air India Air Transport Services is a wholly-owned subsidiary of Air India and is involved in activities of ramp handling for aircraft, cargo handling and passenger handling.

"We will invite fresh preliminary bids with FY19 financials of AIATSL. We are hopeful that FY19 numbers will be better than FY18 financials in attracting substantial interest from bidders," sources aware of the development told CNBC-TV18.

The government via Air India Asset Holding Company, the special purpose vehicle formed for divestment of Air India, had invited preliminary bids in February 2019 for 100 percent stake of AIATSL out of which, 98 percent was through strategic sale and 2 percent of equity share capital was to be offered to employees in the form of ESOP.

The government issued a total of 11 corrigenda with respect to the divestment process of AIATSL since February 2019 with the latest on December 27, 2019.

AIATSL posted a net profit of Rs 62.9 crore, Rs 15.05 crore and Rs 101.4 crore in 2017-18 (April-March), 2016-17 and 2015-16 respectively, as per the government data.
12/02/20 CNBC TV18

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