Inter-ministerial group meet on sale of Air India ground handling arm on May 2

The government is now looking at starting the process on sale of Air India's ground handling arm, Air India Airport Services Ltd (AIASL) soon, with an inter-ministerial group likely to meet May 2 to discuss the matter. 

AIASL is a considered to be one of the largest ground handling firms in terms of its performance and its services across majority airports in India. 

Government officials have told Business Today TV that the preliminary information memorandum (PIM) would be issued soon and be followed up by inviting bidders to express interest in the firm. The idea is to complete the sale by next March. 

The government plans to initiate the sale of other erstwhile subsidiaries of Air India in 2023 including the real estate assets, especially the iconic Air India building in Mumbai. The sale of subsidiaries should happen as early as the end of this financial year. E&Y is the transaction advisor for the transactions.

In January 2021, the centre formally handed over Air India to the Tata group, along with Air India Express and a 50 per cent stake in ground handling arm, Air India Singapore Airport Terminal Services. It is now looking to sell other assets including AI’s engineering subsidiary, the ground handling unit, Alliance Air and the Nariman Point building. 

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