AI in talks with Lufthansa, Air France for AIESL takeover

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Tata-owned Air India is looking to partner with German aircraft-maintenance giant Lufthansa Technik and French-Dutch airline Air France-KLM’s engineering unit to bid for AI Engineering Services Limited (AIESL), when it is put up for sale.

Singapore Airlines which holds a 25.1% stake in Air India will also be a part of the consortium through its engineering arm SIA Engineering Company Limited. Ownership of AIESL, was earlier with Air India. Before selling Air India, the government had transferred it to a separate company.

AIESL,is now owned by the government, which is an MRO (maintenance, repair, and operations) unit largely servicing Air India’s fleet. It is very important for Air India to ensure the ownership of this company as it relies on its ownership to ensure the smooth operation of its fleet of aircraft