As many as three Air India group entities are profitable, with low-cost arm Air India Express garnering the maximum profit, the government said on Tuesday.
The Union Cabinet has approved disinvestment of Air India and the government aims at completing its sale by year-end.
“Two subsidiaries of Air India namely, Air India Express Limited, Air India Air Transport Services Limited (AIATSL) and joint venture, namely AISATS, have been making profit,” the Minister of State for Civil Aviation Jayant Sinha 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 Air India 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 percent decline in its profit and AIATSL showed 41 per cent drop in financial year 2017 as compared to the year before.
AISATS saw 20 percent increase in its profit.
Some of the other subsidiaries of Air India include Air India Charters Limited, IAL Airport Services Limited, Airline Allied Services Limited, Air India Engineering Services Limited and Hotel Corporation of India Limited.
The government is expected to sell more than 51 percent of its stake in Air India, which will be sold as “four different entities”.
Air India, its low-cost arm Air India Express and subsidiary AISATS would be one entity while regional arm Alliance Air would be a separate entity.
Besides, Air India Air Transport Services Ltd (AIATSL) and Air India 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.moneycontrol