The government has invited expression of interest (EoI) for the strategic sale of Air India's ground handling subsidiary.
While the disinvestment of Air India found no takers, the government proposes to transfer management control and sell 100 per cent stake in Air India Air Transport Services Limited (AIATSL). This will include offloading of 98 per cent stake in a strategic sale, while the remaining two per cent stake will be offered under an employee stock option scheme.
The ground handling business is held under Air India Asset Holding Company, a special purpose vehicle of the Government of India.
According to the information memorandum issued on Tuesday, AIATSL is the largest ground handling services provider in India with operations at 76 airports. The company has a diverse mix of international and domestic clients catering to 46 airline operators. It is a profitable company (average Ebitda margins of 19% and average PAT margins of 11% for the last 3 years) and does not have any debt or contingent liabilities.
The last date of EoI submission is March 26.