Monday, January 27, 2020

Modi government to sell 100 per cent stake in Air India; issues bid document

New Delhi: In a renewed effort to sell national carrier Air India, government on Monday said that it will sell a 100 per cent stake in the carrier, which operates both domestic and international routes.

Aviation minister Hardeep Singh Puri said that the government has invited Expression of Interest for proposed strategic disinvestment of Air India by way of the transfer of management control and sale of 100 per cent equity share capital of Air India Ltd.

Minister said that the major portion of the huge debt will be part of special purpose vehicle. According to preliminary information memorandum released on Monday, debt worth Rs 23,286.5 crore would remain with Air India and Air India Express at the time of the disinvestment. The remaining debt would be allocated to SPV Air India Assets Holding Limited. Air India has a total debt of over Rs 60,000 crore.

As part of the strategic disinvestment, Air India would also sell 100 per cent stake in low-cost airline Air India Express and 50 per cent shareholding in joint venture AISATS, as per bid document issued on Monday.
Even as the management control of the airline would also be transferred to the successful bidder, the minister asserted that the airline will retain the brand name of Air India.
27/01/20 New Indian Express
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