Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Gmail
Reserve Bank Of India (RBI)
Reliance
Sensex
New Labour Laws in India
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Air India Privatization: Carrier to be split into 2
Business

Air India Privatization: Carrier to be split into 2

Air India Privatization: Carrier to be split into 2
Written by NewsBytes Desk
Edited by Shikha Chaudhry
Dec 12, 2017, 01:16 pm 3 min read
Air India Privatization: Carrier to be split into 2

The government's Air India privatization plan seems to have taken shape. The Centre would split the state-run airline into two before sale. Air India and its wholly-owned profitable subsidiary Air India Express, undertaking West Asia operations would be sold as one entity. A special purpose vehicle, including Air India's Rs. 32,000crore working-capital debt, other subsidiaries, and assets (lands/buildings), would be sold later. Here's more.

Timeline
Plan to conclude AI-AIE sale by end of fiscal

The plan for combining Air India and Air India Express for sale and later monetizing the special purpose vehicle (SPV) was detailed in a Cabinet note prepared on the recommendations made by Finance Minister Arun Jaitley, said official sources. They intend to sell Air India-Air India Express by the end of the current fiscal; the balance transactions would be undertaken in due course.

Details
Air India's subsidiaries, assets

Air India has four subsidiaries: Air India Charters (owner of AIE), Airline Allied Services (Alliance Air's owner), Air India Air Transport, and Air India Engineering Services. It also has several downstream firms and joint-ventures. Its physical assets include the aircraft fleet, also Boeing Dreamliners, land parcels, buildings (in India and abroad), valuable bilateral flying/landing rights, aircraft parking slots at airports around the globe.

How?
Centre may receive Rs. 15,000cr from AI-AIE sale

According to official sources, AI-AIE's prospective buyer would take over the state-run carrier's 12,000-strong workforce, 115 aircraft, headquarters at Delhi's Gurudwara Rakabganj Road, along with its Rs. 20,000crore aircraft-related loans and Rs. 8,000crore due to oil companies. Some officials said the government is likely to receive nearly Rs. 15,000crore from the AI-AIE sale this year; accurate valuations haven't been done yet.

Loans
Sale of special purpose vehicle

On the other hand, the proposed special purpose vehicle (SPV) would negotiate for settling the massive Rs. 32,000crore debt of Air India. Sources say that banks may have to "take a haircut" (agree to accept less money). The banks which lent money to the national carrier have reportedly expressed willingness to negotiate with the government on settling Air India's loans.

Unanswered questions
Will the government retain a stake in AI?

The Centre would decide whether it would retain a minority stake in Air India. But keeping Air India in its fold would be a very expensive proposition. It will have to infuse more than Rs. 50,000crore under a proposed AI revival plan, entailing the carrier to remain as a state-run entity. The government has already infused Rs. 30,000crore in the last few years.

Why not?
Foreign airlines to bid for Air India: Reports

Despite efforts to revive Air India, the airline did not post a profit in the last decade. It reported a net loss of Rs. 3,837cr in 2015-16. Reportedly, a foreign airline and an Indian carrier are likely to bid for Air India jointly. Foreign airlines can acquire up to 49% stake in Indian carriers, under the existing Foreign Direct Investment (FDI) rules.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
NewsBytes Desk
NewsBytes Desk
Mail
Shikha Chaudhry
Shikha Chaudhry
Twitter
I upset the apple cart, and then I undo it. NIT Allahabad, Cornell University. Dreamer; Wannabe Writer.
Latest
Air India
Arun Jaitley
Foreign Direct Investment
Ministry of Civil Aviation
Alliance Air
Latest
Toyota Urban Cruiser Hyryder: Which variant offers best value?
Toyota Urban Cruiser Hyryder: Which variant offers best value? Auto
#AllAboutFees: Charting Shahid Kapoor's from 'Ishq Vishk' to 'Jersey'
#AllAboutFees: Charting Shahid Kapoor's from 'Ishq Vishk' to 'Jersey' Entertainment
What to expect from 'Stranger Things' Season 5?
What to expect from 'Stranger Things' Season 5? Entertainment
Apple AirPods Pro (2nd generation) to feature Type-C port
Apple AirPods Pro (2nd generation) to feature Type-C port Technology
England vs India, 5th Test: Day 4 report and stats
England vs India, 5th Test: Day 4 report and stats Sports
Air India
Over 50% IndiGo flights delayed as crew attend job interviews
Over 50% IndiGo flights delayed as crew attend job interviews Business
Air India planning to buy 300 aeroplanes in largest-ever order
Air India planning to buy 300 aeroplanes in largest-ever order Business
Air India employees asked to vacate colonies by July 26
Air India employees asked to vacate colonies by July 26 India
Air India flight returns to Mumbai after engine stops mid-air
Air India flight returns to Mumbai after engine stops mid-air India
Aviation veteran Campbell Wilson is new CEO of Air India
Aviation veteran Campbell Wilson is new CEO of Air India Business
More News
Arun Jaitley
Bishan Singh Bedi wants his name removed from Kotla stand
Bishan Singh Bedi wants his name removed from Kotla stand Sports
Happy hours no more: Coronavirus changed rules of eating out
Happy hours no more: Coronavirus changed rules of eating out Business
Budget 2020: Nirmala Sitharaman reveals three themes of Budget
Budget 2020: Nirmala Sitharaman reveals three themes of Budget India
Jaitley: Remembering the man (behind the politician) on his birth-anniversary
Jaitley: Remembering the man (behind the politician) on his birth-anniversary India
Several DDCA members quit after Rajat Sharma's resignation
Several DDCA members quit after Rajat Sharma's resignation Sports
More News
Foreign Direct Investment
Telecom reforms: Cabinet approves 100% FDI through automatic route
Telecom reforms: Cabinet approves 100% FDI through automatic route India
India's planned foreign investment policy changes could hurt Amazon
India's planned foreign investment policy changes could hurt Amazon Business
New benchmark: FDI equity inflows cross $500 billion in India
New benchmark: FDI equity inflows cross $500 billion in India Business
China slams India's new 'discriminatory' FDI policy; seeks revision
China slams India's new 'discriminatory' FDI policy; seeks revision World
Targeting China, India revises FDI Policy to curb 'opportunistic acquisitions'
Targeting China, India revises FDI Policy to curb 'opportunistic acquisitions' Business
More News
Ministry of Civil Aviation
Regular international flights resume from today; everything you should know
Regular international flights resume from today; everything you should know India
Airports Authority issues new guidelines as international flights resume tomorrow
Airports Authority issues new guidelines as international flights resume tomorrow India
India restores regular visas to all, e-visas to 156 countries
India restores regular visas to all, e-visas to 156 countries India
India to resume regular international flights from March 27
India to resume regular international flights from March 27 India
India extends ban on international flights 'until further orders'
India extends ban on international flights 'until further orders' India
More News
Alliance Air
Government could sell Alliance Air as well: Check details here
Government could sell Alliance Air as well: Check details here Business
Now, fly from Bengaluru to Mysuru in just 55 mins
Now, fly from Bengaluru to Mysuru in just 55 mins Bengaluru
#KeralaFloods: Kochi airport suffers estimated loss of over Rs. 220cr
#KeralaFloods: Kochi airport suffers estimated loss of over Rs. 220cr India
Kerala: Commercial flight operations from Kochi Naval Base from tomorrow
Kerala: Commercial flight operations from Kochi Naval Base from tomorrow India
Alliance Air to operate 'proving flight' to Kochi naval base
Alliance Air to operate 'proving flight' to Kochi naval base India
More News
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022