Official: AIESL Divestment to Bring Positive Impact on Civil Aviation Industry

A senior government official stated that the disinvestment of Air India Engineering Services Ltd (AIESL) would benefit the country’s civil aviation industry. Rajiv Bansal, the Civil Aviation Secretary, confidently expressed that he expects the disinvestment to be successful in the coming months. He also highlighted that AIESL had a strong “topline and bottom line,” indicating the company’s sound financial standing.

AIESL

Last year, Tata Group acquired Air India and Air India Express through a disinvestment process. AIAHL now owns AIESL, which is a significant player in the maintenance, repair, and overhaul (MRO) sector. One of the four subsidiaries of the former state-owned Air India, AIESL, is planned to be sold by the Indian government.

Bansal stated that a significant number of interested parties would exist once the Expression of Interest (EOI) for AIESL’s disinvestment is released in the near future. He hoped that the Indian civil aviation industry would benefit from the successful completion of the disinvestment.

During his speech at the CAPA aviation summit held in the national capital, Bansal highlighted that the privatization of Air India has created fair competition among all the carriers. In the absence of privatization, one carrier had an advantage over others since the sovereign government was constantly investing in it. Therefore, the privatization has created a level playing field for all the carriers, he noted.

In the meantime, the government of India is taking measures to encourage the local production of airframes and aircraft parts.

Bansal pointed out that despite being a vast country, India still lacks the ability to manufacture its aircraft, which is a significant drawback. However, he also mentioned that once a market grows to a certain size, it becomes necessary for Original Equipment Manufacturers (OEMs) to establish maintenance, repair, and overhaul (MRO) facilities in India.

During a statement on Monday, Civil Aviation Minister Jyotiraditya Scindia stressed the need for India to focus on the manufacturing of aerospace products.

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