TIL Desk/Business/New Delhi/ Terming sale-bound Air India and two of its subsidiaries as great assets, Civil Aviation Minister Hardeep Singh Puri has said that the buyer of the airline would be using the iconic brands. The Minister said that due to its accumulated debt of about Rs 60,000 crore, Air India’s financial position could be described as very fragile but a private company can turn it around and make profitable.
After failing to attract a single bid in 2018, the government has this time sweetened the offer. It has proposed to take off a major chunk of the airline’s debt and liabilities, besides being ready to divest its entire stake in Air India, and its low-cost subsidiary Air India Express. The ground-handling joint venture AISATS in which the flag carrier holds 50 per cent stake is also on the block.
The liabilities to be retained in Air India would be equal to certain current and non-current assets. Considering the combined figures as on March 31, 2019, the liabilities retained would be around Rs 8,771.5 crore. The remaining debt and liabilities of Air India and Air India Express will be allotted to special purpose vehicle Air India Assets Holdings Ltd (AIAHL).
