The Civil Aviation Secretary is also the Chairman and Managing Director of the national carrier Air India.
Government is making every effort to complete the disinvestment process National carrier Air India By the end of December, according to a senior official. Tata Group firm Tales Pvt Ltd has emerged as the winning bidder for loss-making Air India.
On 25 October, the government signed a share purchase agreement with Tata Sons to sell airline for ₹18,000 cr, This amount includes a cash payment of ₹2,700 crore and a payment of over ₹15,300 crore of the carrier’s debt.
Along with Air India, Tata will acquire 50% stake in low-cost carrier Air India Express and Air India’s similar joint venture AISATS.
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On Wednesday, Civil Aviation Secretary Rajiv Bansal said that 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.
He said that Air India is incurring a monthly loss of more than ₹600 crore. The airline has 43 wide-body aircraft, including 27 Boeing 787s.
On October 20, Prime Minister Narendra Modi had said that Air India’s decision would give new energy to the country’s aviation sector.
As of August 31, Air India had a total debt of Rs 61,562 crore. Of the total amount of TALAS, Rs 15,300 crore and the remaining Rs 46,262 crore will be transferred to Air India Assets Holding Limited (AIAHL).
In addition, non-core assets of Air India, including land and buildings, valued at ₹14,718 crore, are also being transferred to AIAHL. In addition, liabilities of ₹15,834 crore to operational creditors, such as dues for fuel purchases, will be transferred to AIAHL as of August 31.
In 2019, the government set up a special purpose vehicle – AIAHL – to hold debt and non-core assets of the Air India Group.
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