Monday, January 27, 2020

Current Situation Of Air India Is Very Fragile, Says Civil Aviation Minister

Civil Aviation Minister Hardeep Singh Puri, addressing the media on Monday, described the current situation of the national carrier as "very fragile". The government had earlier released the preliminary information memorandum (PIM) for seeking expression of interest for strategic disinvestment of Air India. Mr Puri added that Air India is under a debt trap due to accumulated debt of around Rs 60,000 crore.
After failing to sell majority stake in Air India in 2018, the government has worked on critical areas this time around to make the disinvestment bid more attractive to the prospective bidder, Mr Puri said.

The revised disinvestment guidelines include stake sale of 100 per cent in Air India and its subsidiary Air India Express, 50 per cent stake sale in ground operations holding company AISATS and freezing of debt, Mr Puri noted.

Some parameters in current PIM include transfer of management control and sale of 100 per cent shares of Air India, along Air India's 100 per cent stake in its subsidiary Air India Express and 50 per cent stake in joint venture AISATS. The debt in Air India has been frozen at Rs 23,286.5 crore, which is approximately equivalent to the written down value of the combined asset of Air India and Air India Express, Mr Puri said.
27/01/20 Abhishek Vasudev/NDTV

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