Page 22 - AAA JANUARY-MARCH 2021 Online Magazine

AIRLINES

Maharajah

on the Block

AISATS benefits from SATS Limited’s seven
DISINVESTMENT PLANS FOR INDIA’S FLAG decades of ground handling and catering
CARRIER AIR INDIA ARE CLOSE TO CONCLUSION experience as a leading provider of food
solutions and gateway services. AISATS cur-
rently provides its services to the customer
Atul Chandra airlines in international airports at Bengaluru,
Delhi, Hyderabad, Mangalore and Trivandrum
in India, where it offers end-to-end ground
India’s ailing national carrier Air India (AI) is likely to find a new handling services such as passenger and bag-
owner soon as the Government proceeds with its disinvestment gage handling, ramp handling, aircraft interior
plans for the lossmaking carrier in earnest. Media reports recently cleaning, load control and flight operations, and
indicated that India’s Tata Group and Indian carrier SpiceJet have cargo handling services for general, perishable,
been shortlisted as bidders. While Air India is considered a prized trans-shipment, express courier and special
asset in the Indian aviation domain by some observers due to its cargo.
large network and infrastructure, it is also saddled with a total debt
of over US$12 billion and estimates peg its losses for FY20-21 at AI also has interests in other entities (Air India
US$1.4 billion. Despite decades of Government largesse, AI and Engineering Services, Air India Air Transport
Air India Express have a combined share of approximately 12.7% Services, Airline Allied Services and Hotel
of the Indian domestic market (as of Q2 FY20). Corporation of India) which are in the process
of being transferred to a separate company –
The government-appointed transaction advisor for the AI disinvest- Air India Assets Holding Limited (AIAHL) and
ment is Ernst and Young LLP India (EY). The Indian Government has will not be a part of the disinvestment. With
moved fast on the proposed disinvestment of AI in recent years, no response received from prospective bid-
in an effort to meet its larger disinvestment goals of reducing its ders during a previous disinvestment exercise
holdings in public held enterprises. It is now looking to disinvesting held in 2018, the Government then decided to
its 100% equity stake in AI along with AI’s 100% equity stake in Air undertake near and medium-term efforts to
India Express Limited (AIXL) and AI’s 50% equity stake in Air India enhance operational efficiencies and improve
SATS Airport Services Private Limited (AISATS), which is a 50:50 AI’s performance along with seeking to mone-
joint venture between AI and SATS Limited, Singapore. tize non-core land and building assets.

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