{"id":35918,"date":"2018-11-01T12:17:37","date_gmt":"2018-11-01T06:47:37","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35918"},"modified":"2018-11-01T12:17:37","modified_gmt":"2018-11-01T06:47:37","slug":"talks-begin-to-divest-ai-arm","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/talks-begin-to-divest-ai-arm\/","title":{"rendered":"Talks begin to divest AI arm:"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-business\/talks-begin-to-divest-ai-arm\/article19393090.ece\"><span style=\"font-weight: 400;\">Talks begin to divest AI arm<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Air works has expressed an interest in acquiring a stake in AIESL which has the largest MRO business in the country with a facility for component and engine overhaul.<\/span><\/p>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Informal talks have begun to find potential buyers for Air India\u2019s subsidiaries, including its maintenance, repair and overhaul (MRO) business.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An expression of interest from India\u2019s oldest private sector MRO service provider, Air Works, has come as a short in the arm for the Centre that is considering an option to split Air India\u2019s different businesses and hive them off separately.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">National carrier has India\u2019s largest MRO unit for engines, components overhaul<\/span><\/li>\n<\/ul>\n<p><b>MRO:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">MRO is a capital-intensive industry with a highly competitive environment, with low returns and there is a long payback or cost absorption period in view of the fixed overheads on infrastructure facilities and high wage costs due to licensed manpower, according to AIESL annual report 2014-15.<\/span><\/li>\n<\/ul>\n<p><b>Key points:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Centre has already received a formal expression of interest from the country\u2019s largest private carrier Indigo for Air India\u2019s airline operations.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The government may also hold talks with foreign MRO players such as Jordon Aircraft Maintenance Limited (JorAMCO), Hong Kong Aircraft Engineering Company (HAECO) and <a href=\"http:\/\/samolets.com\/etihad-airways\/\">Ethihad Airways <\/a>Engineering which are keen to invest in the MRO business in India to ascertain their interest in acquiring Air India\u2019s subsidiary<\/span><\/li>\n<\/ul>\n<p><b>Recent steps:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">On June 28, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister, gave an in-principle nod for strategic divestment of Air India.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The committee also approved strategic disinvestment in Air India\u2019s subsidiaries, including AIESL, ground handling arm Air India Transport Services Ltd, Air India Charters Limited which operates Air India Express and Airline Allied Services Ltd, which operates Alliance Air.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A group of Ministers under Finance Minister Arun Jaitley has been formed to decide on the modalities of Air India\u2019s stake sale.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">AIESL has facilities at New Delhi, Mumbai, Hyderabad, Nagpur, Thiruvananthapuram and Kolkata \u00a0for carrying out maintenance, repair and overhaul on \u00a0various types of Airbus and Boeing aircraft<\/span><\/li>\n<li><span style=\"font-weight: 400;\">AIESL has been incurring losses since its inception in 2013 when it was carved out of Air India as a separate business unit.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In 2016-17, AIESL\u2019s losses rose 17% to Rs 653 crore as per provisional estimates.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Talks begin to divest AI arm: Context: Air works has expressed an interest in acquiring a stake in AIESL which has the largest MRO business in the country with a facility for component and engine overhaul. Introduction: Informal talks have begun to find potential buyers for Air India\u2019s subsidiaries, including its maintenance, repair and overhaul&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/talks-begin-to-divest-ai-arm\/\">Continue reading <span class=\"screen-reader-text\">Talks begin to divest AI arm:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35918","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704574188},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35918"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35918\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}