Monday, December 10, 2018

Air India's divestment is ‘temporarily’ on hold, says CMD

The government has decided to keep the divestment of Air India (AI) at the back burner till the state carrier reduces the amount of debt it has on its books of accounts.

“The divestment has been put on hold for the time being,” Pradeep Kharola, chairman and managing director, Air India told Moneycontrol.

He said that the airline has been incurring losses, especially due to high crude oil prices, which made the bid unattractive.
“All the airlines have not done well in the past six months… Also, because the crude oil price is so high, it was thought that it was not the right time to divest it,” he said.
The government had set up a ministerial committee, headed by finance minister Arun Jaitley, to suggest ways to divest the airline. The government had decided to sell 76 percent of its stake in the national carrier and invited bids for the same in May 2018.
10/12/18 Nikita Vashisht/moneycontrol