Moneycontrol's Shraddha Sharma talks to Corporate Bureau Chief Prince Thomas to find out how what's the development in the government's attempt to sell Air India.
The government is making a second attempt to sell Air India as it strives to meet its disinvestment target. It will completely exit Air India, including in units Air India Express and Air India SATS (AISATS).
Bidders can submit their Expression of Interest (EoI) for the national carrier by March 17, and those that qualify will be intimated by March 31. The ailing carrier is dependent on government largesse to run its operations and now needs a new owner to stay afloat.
In 2018, the government had offered to sell 76 percent stake in the airline, but no buyer had stepped up. The national carrier’s net loss ballooned to Rs 8,556 crore in FY19 from Rs 5,348 crore the previous year. It has total liabilities now stand at over Rs 52,000 crore.
To attract suitors, the government has parked Rs 30,000 crore of debt and liabilities in a special purpose vehicle, so a new owner will incur Rs 23,286 crore in debt, taken for aircraft purchases.
In this episode of Editor’s Take, Moneycontrol’s Shraddha Sharma talks to Corporate Bureau Chief Prince Thomas to find out how what’s the development in the government’s attempt to sell Air India.Watch the video for more.