The Civil Aviation Secretary is also the Chairman and Managing Director of the national carrier Air India.
The government is making all efforts to complete the disinvestment process of national carrier Air India by the end of December, according to a senior official. Tata group firm Talace Private Limited has emerged as the winning bidder for loss-making Air India.
On October 25, the government signed the share purchase agreement with Tata Sons for the sale of the airline for ₹18,000 crore. The amount includes payment of ₹2,700 crore in cash and take over ₹15,300 crore of the carrier’s debt.
Along with Air India, Tatas will acquire low-cost carrier Air India Express and Air India’s 50% stake in equal joint venture AISATS.
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On Wednesday, Civil Aviation Secretary Rajiv Bansal said all efforts are being made to complete the disinvestment process of Air India by the end of December. Mr. Bansal is also the Chairman and Managing Director of the national carrier.
Air India has been incurring a monthly loss of more than ₹600 crore, he noted. The airline has 43 wide-body planes, including 27 Boeing 787s.
On October 20, Prime Minister Narendra Modi said the decision on Air India will give new energy to the country’s aviation sector.
As of August 31, Air India had a total debt of ₹61,562 crore. Of the total amount, Talace will take over ₹15,300 crore and the remaining ₹46,262 crore will be transferred to Air India Assets Holding Limited (AIAHL.)
Besides, non-core assets of Air India, including land and building, valued at ₹14,718 crore, are also being transferred to AIAHL. Further, liabilities of ₹15,834 crore towards dues to operational creditors, such as those for fuel purchases, as of August 31 would be transferred to AIAHL.
In 2019, the government set up a special purpose vehicle – AIAHL – for holding debt and non-core assets of the Air India group.