SriLankan set to sell catering and GH units
Cash-strapped SriLankan Airlines’ restructuring committee has proposed the sale of the carrier’s catering and ground handling units.
The carrier has though decided against liquidating its national airline and will instead look for a foreign investor to pump in funds and help turn around its financial woes.
SriLankan Airlines’ has two profit-making subsidiaries in catering and ground handling that it says could go some way to “enhancing the value of the company” through proper restructuring, the report says.
The airline is estimated to be saddled with loans and accumulated losses of nearly $2 billion.
Previous attempts to privatise the airline failed in May 2017 when San Francisco-based private equity firm TPG withdrew its bid for a 49 per cent stake. Since then, there has been no foreign or local investor interest in SriLankan Airlines.
SriLankan Airlines was profitable until 2008 until the then president of Sri Lanka Mahinda Rajapakse cancelled the management agreement with minority stakeholder Emirates.
Air India to sell GH subsidiary AIATSL
The Indian government has reportedly offered to sell cash-strapped Air India’s ground handling subsidiary Air India Transport Services Ltd (AIATSL).
The government is seeking to offload a 98 per cent stake through a strategic sales and the remaining two per cent would be offered to employees of AIATSL.
Air India has huge debts although AIASTL is one of the shining lights and is profitable and posted a net profit of Rs 711 crore in 2017/18, Rs 334 crore up on the previous year.
AIATSL has been providing services to 46 airlines including the likes of Emirates, GoAir, Qatar Airways and Lufthansa.
Cargojet buys GH and GSE company in Mirabel
Canadian freighter carrier Cargojet has bought a ground handling and GSE company at Mirabel International Airport in Québec for approximately C$3million.
The agreement to purchase includes all company assets and assumes all current lease arrangements. No details of the name of the company it bought were given.
Cargojet chief executive officer, Ajay Virmani said: “The acquisition of this ground handling and GSE company is the continuation of our strategic initiative to insource all ground handling operations at airports across our Canadian network.
“We are pleased to welcome our new team members to the Cargojet family and look forward to integrating and growing our business at Mirabel and across the country by continuing providing our customers continued best in class air cargo service and reliability.”
Cargojet carries over 1,300,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilising a fleet of freighter aircraft.