According to an official quoted by the PTI on Monday, the Centre has started the process of selling its holdings in two subsidiaries of the former national carrier Air India, AIASL and AIESL.
“The Department of Investment and Public Asset Management (DIPAM) has initiated investor meetings and roadshows to gauge interest in AIASL and AIESL. We will soon invite EoIs from interested bidders,” the official mentioned.
In October of last year, Tata Group purchased a debt-ridden Air India for Rs 18,000 crore. On January 27, 2022, Tatas received the actual transfer. However, the sale excluded non-operational assets, paintings and artefacts, as well as four Air India subsidiaries: Air India Airport Services Ltd (AIASL), Air India Engineering Services Ltd (AIESL), Alliance Air Aviation Ltd (AAAL), and Hotel Corporation of India Ltd (HCI).
Approximately Rs 15,000 crore worth of these subsidiaries and non-core assets have been transferred to an SPV called Air India Assets Holding Ltd. (AIAHL).
The Center had reportedly stated at the time that these carrier subsidiaries and non-core assets will eventually be disposed off. DIPAM has started the process of investor meetings for the privatisation of AIASL and AIESL in order to achieve this goal.
The entire debt owed by Air India as of August 2016 was Rs 61,562 crore. Liabilities of Rs. 15,300 crore were transferred to the Tata Group, while the remaining 75%, or roughly Rs. 46,000 crore, was given to AIAHL.
The government has settled its portion of outstanding debt with the creditors of Air India. The government set aside Rs 65,000 crore for CPSE disinvestment in the current fiscal year’s budget. It has raised nearly Rs 25,000 crore thus far.
In the meantime, Air India last week revealed its plans to considerably expand its foreign operations over the next five years while increasing its domestic market share by over 30%. After getting employee input, the airline is implementing a transformation strategy.
Air India on Thursday revealed “Vihaan.AI,” a complete transformation plan with a specific five-year road map, along with its aspirations to add 30 new wide-body and narrow-body aircraft.
The company said that the plan will put a strong emphasis on both network and fleet growth, creating a completely new customer proposition, enhancing dependability and on-time performance (OTP), assuming leadership roles in technology, sustainability, and innovation, and aggressively investing in the best industry talent.
