Air India Transport Services Ltd divestment cancelled

Ashwini Phadnis New Delhi | Updated on February 04, 2020

The proposed divestment of Air India Transport Services Limited (AITSL) , the ground handling subsidiary of Air India, has been cancelled.

Sources said now new financial data is available on the basis of which fresh bids can be called. This divestment being called off will not affect the ongoing sell-off of Air India and Air India Express.

AITSL is a fully owned subsidiary of Air India Ltd, which was formed in 2013 with the aim of providing unified ground handling services (Ramp, Passenger, Baggage, Cargo Handling and Cabin Cleaning) under the brand name ‘Air India Airport Services’.

Earlier companies interested in bidding for AITSL had sought clarity on a number of issues including the prospects of AITSL’s Air India business post the divestment of Air India and whether the new owner will be given a free hand to deal with its current employees.

There were also issues over how long the new company, post disinvestment, will continue getting grandfather rights that AITSLcurrently enjoys.

Grandfather rights allows AITSL to carry on business in perpetuity at various airports around the country.

AITSL currently provides ground handling services at 80 airports. Apart from handling the flights of Air India Ltd and its subsidiary companies, ground handling is also provided for 37 foreign scheduled airlines, three domestic scheduled airlines, four regional airlines, 12 seasonal charter airlines, 23 foreign airlines availing perishable cargo handling.

Published on February 04, 2020

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