Monday, December 04, 2017

Core assets like AI Express, AI-SATS, airport slots to be part of AI sale

New Delhi: The sale of Air India will involve its core aviation assets packaged with Air India Express and AI-SATS. According to a government official, all non-core assets, like the Air India building in Mumbai and other offices, will not be a part of the sale.

The government has initiated the process for strategic disinvestment of debt-laden Air India as part of efforts to revive the national carrier.

Air India assets for sale

* Core aviation assets include aircraft, slots at airports and flying rights to various countries.

* Air India Express

* AI-SATS (a ground-handling joint venture with Singapore Airport Terminal Services (SATS))

Air India Air Transport Services and Air India Engineering Services — will be sold separately.

Air India has total debt of Rs 52,000 crore, of which about Rs 33,000 crore is on account of working capital loans, which will be transferred to the SPV, according to Economics Times.

The rest is against aircraft purchases and will be included with the company that’s put up for sale.

Air India operates to 44 foreign destinations and 72 domestic destinations and has assets in each of these cities.

Union minister Jayant Sinha on Friday said the domestic and international operations of Air India would be sold together.

"What we will be offering through the bidding process is the integrated airline (Air India), which means both domestic and international operations (together)," Sinha, the Minister of State for Civil Aviation said.

On the disinvestment process, he said the government is still in the process of identifying which subsidiaries of Air India should be offered separately.
04/12/17 Business Standard