Renowned US-based value investor Mohnish Pabrai says the Modi government will have to be a lot more flexible if it is serious about getting Air India and its huge debt burden off its back.
The government needs to find the best long-term solution for Air India. It would be better off without the debt woes of Air India, he told ETNow's Tanvir Gill in an interview.
Air India has a total debt of around Rs 52000 crore over its head, which includes Rs 22,000 crore aircraft loan and the rest in working capital loan and other liabilities.
"The government has to be flexible in Air India sale price, structure and employee management plan," Pabrai said. A free market-determined approach for AI's staff would be better that absorbing them in the PSU.
The government aims to complete the sale process by the end of 2018, Junior Aviation Minister Jayant Sinha said in an interview on Monday.
22/01/18 Economic Times
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The government needs to find the best long-term solution for Air India. It would be better off without the debt woes of Air India, he told ETNow's Tanvir Gill in an interview.
Air India has a total debt of around Rs 52000 crore over its head, which includes Rs 22,000 crore aircraft loan and the rest in working capital loan and other liabilities.
"The government has to be flexible in Air India sale price, structure and employee management plan," Pabrai said. A free market-determined approach for AI's staff would be better that absorbing them in the PSU.
The government aims to complete the sale process by the end of 2018, Junior Aviation Minister Jayant Sinha said in an interview on Monday.
22/01/18 Economic Times
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