Despite many attractions such as lucrative international routes and prime time slots, Air India has yet to find a suitor after the civil aviation ministry came out with the preliminary information memorandum on Air India's strategic disinvestment on March 28. Air India's mountain of debt, besides many other issues, discourages buyers. The debt stands at Rs 48,876 crore.
India's national airline is also being bled by a cash deficit. The civil aviation ministry has admitted that several of its aircraft are idling because Air India is unable to purchase all the spares it needs thanks to a monthly cash deficit of Rs 200-250 crore that affects availability of funds for maintenance, according to a TOI report.
The ministry has told Parliament’s Public Accounts Committee (PAC) that a restricted cash flow was responsible for inoperational aircraft despite a turnaround plan (TAP) being in force since 2011 while fleet expansion had been hit by viability issues and an ongoing CBI probe into previous acquisitions.
On March 28, the ministry came out with the preliminary information memorandum on Air India's strategic sale. It has sought expressions of interest from potential bidders for a 76-per cent stake sale in loss-making Air India as well as divestment of Air India Express and AI-SATS. The last date for submission of expression of Interest is May 14. The qualified bidder will be informed on May 28. A number of airlines have refused to come forward due to discouraging terms of sale.
23/04/18 Economic Times
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India's national airline is also being bled by a cash deficit. The civil aviation ministry has admitted that several of its aircraft are idling because Air India is unable to purchase all the spares it needs thanks to a monthly cash deficit of Rs 200-250 crore that affects availability of funds for maintenance, according to a TOI report.
The ministry has told Parliament’s Public Accounts Committee (PAC) that a restricted cash flow was responsible for inoperational aircraft despite a turnaround plan (TAP) being in force since 2011 while fleet expansion had been hit by viability issues and an ongoing CBI probe into previous acquisitions.
On March 28, the ministry came out with the preliminary information memorandum on Air India's strategic sale. It has sought expressions of interest from potential bidders for a 76-per cent stake sale in loss-making Air India as well as divestment of Air India Express and AI-SATS. The last date for submission of expression of Interest is May 14. The qualified bidder will be informed on May 28. A number of airlines have refused to come forward due to discouraging terms of sale.
23/04/18 Economic Times
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