India extends deadline for bids of Air India ground handling arm

posted on 16th April 2019 by Justin Burns

The deadline for submission of bids for sale of Air India’s ground handling arm is set to be extended by a month until 16 May, reports claim.

A report on The New Indian Express says potential investors will have longer to bid for Air India Air Transport Services Ltd (AIATSL). The expression of interest was floated on 12 February and the last date for submission of bids was fixed as 16 April.

In November last year, Finance Minister Arun Jaitley-led a ministerial panel that decided to proceed with the strategic sale of AIATSL.

The government had also decided to transfer AIATSL, along with three other Air India subsidiaries, to a special purpose vehicle — Air India Assets Holding Ltd (AIAHL).

Proceeds from the sale of these four subsidiaries would be used to pay off Air India’s huge debt which is Rs 55,000 crore (US$7.8 billion). Of this, Rs 29,000 crore debt has been transferred to AIAHL.