The Government Will Soon Sell Air India’s Ground Handling And Engineering Units

Air India

The Government Will Soon Sell Air India’s Ground Handling And Engineering Units

September 21, 2022: The government will soon sell Air India’s ground handling and engineering units. The center aims to complete the transaction during the current financial year and is considering seeking an Expression of Interest (EoI) from Air India’s former ground handling and engineering unit by November. said a person familiar with the matter.

The Department of Investment and Public Assets Management (DIPAM) launched a roadshow with potential buyers of AI Airport Services (AIASL) and AI Engineering Services (AIESL) last week to assess the interest of bidders. His EY, a consulting firm, is a transaction advisor in this process. I

ndustry sources said the roadshow was attended by key players. Indian companies such as Bird Group and Tata Sands have joined the ground handling unit, as well as interest from major international companies such as Swiss ground handling company Swissport and Turkey’s Serevihi Aviation Holding.

Tata Sons and Adani The group has also joined the AI ​​engineering services roadshow, said sources familiar with the development. Both companies did not respond to inquiries.

Government officials say a roadshow is underway to collect feedback from the industry so EoIs can be designed to be more resilient. “We want to incorporate feedback from the industry to make the sales process easier and faster.

The company is profitable, has a presence across India, and has a skilled workforce, which makes it very attractive. ‘ said a government With both companies extracting value from their largest customer, Air India, the government needs to bring them to market as soon as possible.


As part of a share purchase agreement signed between Tata Sands and the government during the sale of Air India, there is a three-year lock-up period under which Air India must continue to operate with its ground handling and engineering unit.

“Both companies have their strengths, but one of our customers, Air India, will add value to both companies, leading to more competitive bids and benefits for the government,” said a senior official at the ground handling company.

A senior executive at an aircraft maintenance company said AIESL has expertise in all areas, including base maintenance, line maintenance, and component overhaul services.

“AIESL is a great asset with a trained workforce and certifications from leading global OEMs. We expect global companies to provide similar services,” he said.

As part of the Air India divestiture process, four of its former subsidiaries – AI Air Airport Services, Airline Allied Services or Alliance Air, AI Engineering Services, and Hotel Corporation of India – has been acquired and become non-core and another non-operating Asset has been transferred. To AI Assets Holdings, a special purpose company.

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