The GoM formed into the privatisation of Air India met under the chairmanship of Home Minister Amit Shah to deliberate on the modalities of finding a successful bidder for the beleagured airline which is definitely making operational profit but weighed by its chronic debt and related servicing.Narendra Modi led NDA government took up the privatisation of Maharaja, immediately after it sworn for the second term in May. The budget proposed in the month of July, Finance minister set an ambitious target one lakh crore plus Disinvestment targets, keeping in view the impending sale of Air India.
- GoM giving concrete shape to Modalities
- After the failed bid in 2017, the government is very cautious in its offer for the potential bidder, to make the deal attractive.
- Restructuring and re-classification of the debt is the crux of finding a solution for the privatisation.
- Government already transferred debt related to the operational losses and capital losses to the SPV thereby substantially reducing the debt in the books of the Airline.
- Asset monetisation of the Airline in full swing to raise cash for the current operations.
- Only debt related to Aircraft acquisition kept in the books of the airline.
- Air India have some of the most prized aviation assets in the form of relatively new Long range aircraft fleet and premium landing slots in the North American and European aviation hubs.With Jet Airways already in the chopping block of NCLT in search of New owners, India’s two leading airlines may well have two new owners in the days to come.
- (with inputs from agencies)