Govt to sell 100% stake in AI’s ground handling arm

NEW DELHI: The Central government on Tuesday invited "Expression of Interest" for strategic divestment of national flag carrier's ground handling subsidiary Air India Air Transport Services (AIATSL). To facilitate divestment, Air India has entered into a share purchase agreement with a special purpose vehicle (SPV) -- Air India Assets Holding (AIAHL) -- which has been created to transfer a substantial portion of national carrier's debt, earmarked assets and land banks. As per the Preliminary Information Memorandum (PIM) released on Tuesday, AIAHL plans to sell at least 98 per cent stake in the company through strategic sale and offer up to 2 per cent to employees of AIATSL, as per the terms of an ESOP (employee stock ownership plan). "AIAHL has given 'in-principle' approval for the strategic sale of AIATSL by way of transfer of management control and sale of 100 per cent equity share capital of AIATSL by AIAHL, out of which at least 98 per cent shall be through strategic sale...," the PIM document said. Air India is also planning to increase the daily utilisation of its aircraft both on domestic as well as international routes, a senior company official said on Tuesday.

According to Air India Director of Finance Vinod Hejmadi the company is planning to use its aircraft for at least half hour more per day.