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September 19, 2022

India starts process to offload two Air India subsidiaries

DIPAM has started investor meetings and roadshows to assess interest in AIASL and AIESL.

The Government of India has begun the sale process of two Air India (AI) subsidiaries, AI Airport Services Limited (AIASL) and AI Engineering Services Limited (AIESL), reported Press Trust Of India (PTI ) via Business Standard.

Last year in October, the Indian government sold the country’s debt-laden national carrier Air India to Tata Sons , a holding company of the Indian multinational conglomerate Tata Group for a consideration of Rs180bn.

AI was handed over to the buyer on 27 January 2022.

However, the government at that time decided to retain AI’s four subsidiaries namely AIASL, AIESL, Alliance Air Aviation Limited (AAAL), and Hotel Corporation of India Limited (HCI ) as well as other non-core assets.

These subsidiaries and non-core assets were transferred to a special purpose vehicle (SPV) called Air India Assets Holding Limited (AIAHL).

An official was quoted by the news agency as saying that the Department of Investment and Public Asset Management (DIPAM) has started investor meetings as well as roadshows to assess interest in AIASL and AIESL.

Plans are on to invite EoIs from interested parties, the official further noted.

At the time of the deal, the Indian government said that it would later offload these subsidiaries and non-core assets.

In line with the government’s decision, DIPAM has now started the disposal process of AIASL and AIESL.

In April this year, Tata Sons Private Limited (TSPL)-purchased Air India proposed to acquire a 100% stake in budget carrier AirAsia India. TSPL, which has 83.67% of the equity share capital in AirAsia India, expressed its intent with the Competition Commission of India (CCI ), to purchase the entire equity share capital of the company.

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