Wednesday, August 22, 2018

Government considers selling Air India's non-core assets

New Delhi: Government has proposed transfer of Air India's non-core assets and unsustainable debt to a special purpose vehicle (SPV) in order to revive the financially burdened national carrier. According to a government official, a proposal to transfer Air Indias non-core assets and unsustainable debt to a special purpose vehicle is under serious consideration.

Sources confirmed that finance and civil aviation ministries have already held two rounds of formal talks on the proposal.

The silver lining for loss making subsidiaries of Air India is ownership of assets nearly worth $4.6 billion.

A senior civil aviation ministry official said,"the airline has been suffering for some time. In May, it found no takers despite a 76% sale offer. So, the idea is to de-link the non-core assets, hand them over to a SPV and sell them off to raise the capital needed to make the airline stand on its feet.
22/08/18 Rahul Shrivastava/India Today

0 Comments: