Thursday, November 15, 2018

Air India bailout plan not alternative to divestment: CMD

The government's proposed move to pare Rs 29,000 crore of Air India's debt is a short-term measure and not an alternative to divestment plans, the national carrier's Chairman and Managing Director Pradeep Singh Kharola said.

He said discussions are in advanced stage for transferring Rs 29,000 crore out of Air India's near Rs 55,000 crore total debt to a special purpose vehicle (SPV).

"Temporarily, the divestment is kept on hold. As the scenario improves, the divestment process will restart," Kharola told PTI on the sidelines of IIM-Calcutta's 58th annual foundation day.

The non-core assets will also be transferred along with the debt to the SPV, likely to be known as Air India Assets Holding (AIAHL), he said.

"Initially, land and building will be moved and then the subsidiaries will follow," Kharola said.
14/11/18 PTI/