The Government of India has decided to sell Air India which has been running at a loss for the last ten years. The total debt is amounting to Rs.52,000 crore.
It has 142 aircraft which serves 42 international and 70 domestic destinations.
Though there are many potential buyers, the government has yet to make a decision whether to sell the airlines with or without debt.
A decision was taken by the panel formed for the Air India’s divestment on August 30 to study and execute the privatisation.
This committee is working on the modalities of the strategic disinvestment of AirIndia. Based on the consultation the committee has recommended to move Air India’s debt into a special purpose vehicle (SPV) before selling the carrier.
This will allow the buyers to work out the strategy to maximize the utilization of assets towards making profits.
In the carrier’s point of view the value of the stake could be favourably negotiated.
Though at loss, the national air carrier has the necessary infrastructure and potential to revive, with the ones who are committed to improve.
Source: News In Flight