What Makes Air India’s Ground-Handling Arm More Desirable Than Airline?

Air India’s fully owned ground-handling services subsidiary Air India Air Transport Services Ltd (AIATSL) seems to be drawing more interest from potential bidders than the core airline business. At least two companies  the Delhi-based Bird group and Turkish firm Celebi Holdings  are interested in buying AIATSL, the government has announced.

What makes AIATSL so attractive to the country’s private players which, mostly, already have similar operations? The answer might lie in the scale of the Air India subsidiary’s operations. The company provides ground-handling services at 67-70 airports across India which makes it by far the most dominant player. More importantly, it has a secure and stable client in Air India, which accounts for 70 per of its revenues. Also, it controls a significant part of all ground-handling done for international airlines, including the biggies like Emirates and Singapore Airlines. Read More…

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