New Delhi, September 21: Aviation secretary Rajiv Nayan Choubey on Thursday informed that Cargo Service Center has shown interest in buying ground handling services of state-owned Air India. Cargo Service Center India is a leading Ground Handling Services company that offers a range of value-added services across Airports Services, Cool Chain Solutions, Agribusiness, and Consultancy. Earlier this month, Turkey’s Celebi Aviation Holding also showed interest in buying Air India’s ground handling operations. Choubey informed that Celebi, which provides ground handling services in India, has written to the aviation ministry showing interest to bid for Air India’s ground handling operations.
In August, India’s Bird Group also had expressed its interest to bid for Air India Air Transport Services Ltd. India’s Bird Group handles ground services at seven airports in the country and operates hotels in the United Kingdom. Earlier, low-budget carrier IndiGo too had expressed interest in taking over the carrier’s international operations. Known for its Maharajah mascot, Air India was founded in the 1930s. The airline has been facing crisis under debt of nearly Rs 52,000 crore. As per reports by Moneycontrol.com, of this, about Rs 28,000 crore is working capital debt and Rs 4,000 crore is interested. The government in June approved plans to privatize Air India after successive governments spent billions of dollars to keep the airline flying. Air India had also received a Rs 24,000 crore bailout package but failed to turn its fortune.
Earlier this month, the government took forward the process for Air India divestment and invited applications from investment bankers, law firms and other entities to act as advisers for strategic stake sale of the flag carrier. The Applications have to be submitted by October 12. The government has decided on strategic disinvestment of the loss-making Air India, which is staying afloat on taxpayers’ funds. As per reports by PTI, under a turnaround plan approved by the previous UPA regime, Air India is to receive up to Rs 30,231 crore from the government subject to meeting certain performance thresholds. The report further states that the ten-year bailout package began from 2012. So far, the embattled carrier has received around Rs 26,000 crore under the package.
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