Saturday, January 02, 2021

Govt Will Allow Air India’s New Owner To Fire Upto 25% Employees To Save Money

The Indian loss making public airline Air India is under a lot of news, due to the airline’s disinvestment process.

Now, there have come forward some opportunities and steps which will be handed over to the new owner of Air India.

These allowances will give some power to the new owner of the public airline, including layoffs and selling off few AI aircrafts, shall the need arise.

Let’s learn in detail about this.

As per a note from the agency undertaking the AI sale process, the Department of Investment and Public Management, the new owner of the airline will be given the authority to dispose of assets cumulating from 10-26% of the net assets of the company.

The new owner can reduce the national carrier’s fleet size by selling off unused aircrafts lying on ground.

“Looking at the prevailing conditions acting as an overhang on the aviation sector, the new entity acquiring AI will be allowed to sell a few aircraft or return them to the lessor”, says an official.

Furthermore, with 78 narrow-body Airbus A320s and 43 wide-body Boeing 777s and 787s, Air India holds a total of 121 aircrafts.

Sources have notified that over 25 narrow-body aircrafts and 15 wide-body ones have been lying idly on ground since the pandemic struk. This has killed the demand.

These conditions are going to be part of the share purchase agreement to be shared with bidders, following which financial bids will be invited. The legal firm Cyril Amarchand Mangaldas is drawing up the share purchase agreement.

01/01/21 Malvika Gurung/

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