February 5, 2024Anmol Nagpal

Centre to sell its stake in Air India's previous subsidiaries

The Indian government is planning to sell its shares in Air India's former subsidiaries in FY25, according to Tuhin Kanta Pandey, secretary of the department of investment and public asset management.

Source: Air India

However, the privatization of Container Corporation of India is not expected to progress soon.

Source: Pixabay

The subsidiaries under consideration for divestment include Air India Air Transport Services Ltd, Airline Allied Services Ltd, Air India Engineering Services Ltd and Hotel Corporation of India Ltd.

Source: ANI

The government has previously held road shows for divestment of Air India Engineering Services Ltd and approved the divestment process last year.

Source: ANI/ Air India

These assets are held by Air India Assets Holding Ltd., a special purpose vehicle instituted in 2019 to hold the non-core assets and debt of Air India.

Source: Air India

In contrast, the government has not clarified whether the divestment process for Container Corporation of India will begin in the next financial year.

Source: Unsplash

On January 27, 2022, Tata Sons acquired a 100 per cent stake in Air India through its fully-owned subsidiary Talace Private Limited.

Source: PTI/ Representational

Later, it said that Air India and Vistara shall be merged into a single entity, likely to be completed by March 2024. Singapore Airlines will have a 25 per cent stake in this entity.

Source: Air India

Apart from this, Air India Express and Air Asia India shall also be merged for creating a single low-cost airline.

Source: Air India

In June last year, the airline signed purchase agreements for 470 aircraft with Airbus and Boeing, announced in February of the same year.

Source: Air India

The purchase agreements for the two orders are worth around $70 billion by the list price of the aircraft.

Source: ANI

Air India's orders include 34 A350-1000, six A350-900, 20 Boeing 787 Dreamliners, and 10 Boeing 777X wide-body aircraft, as well as 140 Airbus A320neo, 70 Airbus A321neo, and 190 Boeing 737MAX.

Source: Air India

Besides this, the airline will have options to buy another 370 planes - 300 from Airbus and 70 from Boeing.

Source: PTI