After IndiGo, now Bird Group shows interest in Air India
Gurgaon-based travel firm Bird Group has expressed interest in Air India Ltd privatisation, the second firm to do so after IndiGo parent Interglobe Aviation Ltd, aviation secretary RN Chaubey said on Wednesday.
“This is the second formal interest for Air India we have received,” Chaubey said, talking to reporters after an aviation conference in the national capital.
“We have sent expression of interest in Air India’s ground handling subsidiary,” Ankur Bhatia, head of Bird Group told Mint from London.
Bird Group was founded in 1971 with set-up of Bird Travels, it now has 45 offices and a staff of 9000. The group has footprint in Technology, Aviation Services, Hospitality, Luxury Retail and Education. This includes Amaedus, luxury hotels like Roseate New Delhi, Roseate House New Delhi, The Royal Park London, The Forbury.
The group also has retail outlets of Segway, Triumph Motorcycles, BMW & Mini Cooper besides Bird Hoverboard, Gocycle, Segway, Ninebot, Nanowin e-bike, Acton.
Bird group has also been expanding its footprint in business jets and also provides ground handling services to airlines.
Air India Transport Services Limited (AIATSL) has been providing ground handling service at about 70 airports and is profitable and about 12,000 staff members.
Ground handling is a lucrative business which includes handling many service requirements of an airliner between the time it arrives at a terminal gate and the time it departs on its next flight.
Bhatia said while the group was keen on the business it will depend on how the government structures the sale that will define the road ahead for the group.
In June, the government surprised everyone with its decision to privatise the airline.
The Cabinet Committee on Economic Affairs (CCEA), in its meeting held on 28 June, had given an in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries and also approved the appointment of advisors for this.
InterGlobe Aviation Ltd, which runs IndiGo, has already thrown its hat in the ring. Mint reported on 23 July private equity funds KKR and Co. and Warburg Pincus were also considering doing so.
The aviation ministry told Parliament this month that it would continue to support Air India as per the approved turnaround plan and would honour financial obligations till further directions.
An analyst who did not wished to be named said there was exceptional interest in Air India both by the players in the market who want a chunk of the business of the airline as also by the consultants and investment bankers who would to be the advisors to the deal.