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3 Air India entities, AI Express, AIATSL and AISATS, making profit: Govt

AIATSL is Air India's ground handling subsidiary

Press Trust of India  |  New Delhi 

air india, aircraft
Air India

As many as three group entities are profitable, with low-cost arm Express garnering the maximum profit, the government said on Tuesday.

The Union Cabinet has approved disinvestment of and the government aims at completing its sale by year-end.

"Two subsidiaries of namely, Express Limited, Air Transport Services Limited (AIATSL) and joint venture, namely AISATS, have been making profit," the Minister of State for Civil Aviation said in Rajya Sabha today in response to a question.

AIATSL is Air India's ground handling subsidiary.

AISATS is a 50:50 joint venture between Limited and SATS Limited and provides catering services.

According to data shared by the minister, AI Express earned Rs 297 crore as profit in 2016-2017, while AIATSL and AISATS earned Rs 61.66 crore and Rs 66.06 crore, respectively.

However, AI Express recorded a 14 per cent decline in its profit and AIATSL showed 41 per cent drop in financial year 2017 as compared to the year before.

AISATS saw 20 per cent increase in its profit.

Some of the other subsidiaries of include Charters Limited, IAL Airport Services Limited, Airline Allied Services Limited, Engineering Services Limited and Hotel Corporation of India Limited.

The government is expected to sell more than 51 per cent of its stake in Air India, which will be sold as "four different entities".

Air India, its low-cost arm Express and subsidiary AISATS would be one entity while regional arm Alliance Air would be a separate entity.

Besides, Air Transport Services Ltd (AIATSL) and Engineering Services Ltd (AIESL) would be sold separately.

In June 2017, the Cabinet Committee on Economic Affairs (CCEA) gave its in-principle nod to the strategic disinvestment of Air India, which has a debt burden of more than Rs 50,000 crore.

First Published: Tue, February 06 2018. 23:03 IST