Air India Is Up For Auction In Toto

Debt cut to ₹23,287 crore to sweeten deal

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THE government on Monday put the entire 100 percent stake of Air India Ltd on the auction block, making a fresh push to sell the national carrier after it drew no bids in an earlier effort to sell a 76% stake two years ago.

A document released on Monday showed that the debt burden of the airline for prospective buyers has been slashed to Rs 23,287 crore to sweeten the deal. The rest of the total debt burden of Rs 60,074 crore as on March 31, 2019, would be transferred to Air India Assets Holding Ltd (AIAHL), the government’s special purpose vehicle. Staff dues of about Rs 1,383 crore would also be paid by the government. The entire debt excluding aircraft loans has been taken out of the deal.

As part of the strategic disinvestment, Air India will also sell its entire stake in profit-making subsidiary airline Air India Express as well as 50% shareholding in equal joint venture Air India SATS Airport Services (AISATS). All the three entities would be sold together and management control of the national carrier would be transferred to the new investor.