Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
Associate PartnerAssociate Partner
  
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

Air India to Turn Financially Attractive Before Divestment: Suresh Prabhu

As per the plan, Air India would be allowed to induct more aircraft to grow its market share, while a search-cum-selection committee will scout for the best management talent for the company.

IANS

Updated:March 17, 2019, 11:31 PM IST
facebookTwitterskypewhatsapp
Air India to Turn Financially Attractive Before Divestment: Suresh Prabhu
File Photo of Suresh Prabhu (PTI Photo).

New Delhi: More investments with strict riders have been planned to make Air India financially attractive before starting any new round of divestment, Union Minister Suresh Prabhu has said.

As per the plan, Air India would be allowed to induct more aircraft to grow its market share, while a search-cum-selection committee will scout for the best management talent for the company.

The airline group with a consolidated debt level of around Rs 55,000 crore will also be required to sell non-core assets, and adhere to a Rs 2,000 crore cost saving plan.

According to the minister, the financially challenged airline will induct three aircraft on a dry-lease within the next two months.

"Air India placed order for induction of 27 A320 NEO on dry lease basis. Out of 27, 24 have already been inducted and remaining 3 will be inducted within next two months," the minister told IANS.

In 2018, the company failed to find any suitors during the last and the only attempt by the government to divest its stake in the airline business.

"Government has prepared a 'Revival Plan' of Air India... which includes a comprehensive financial package, transferring non-core debt and assets to an SPV (special purpose vehicle)," Prabhu told IANS.

"We have also proposed to induct eminent persons on the board of Air India through ‘Search-cum-Selection Committee' process."

Last month, the Union Cabinet approved creation of an SPV -- Air India Assets Holding Ltd -- for transferring the accumulated working capital loans of the national carrier.

It has also approved the associated activities for the disinvestment of Air India and its subsidiaries or joint ventures.

Accordingly, Rs 29,000 crore debt of Air India along with four of its subsidiaries will be transferred to the SPV. Non-core assets like paintings and artefacts and other non-operational assets will also be transferred to the SPV.

The move assumes significance as it will lessen the interest payment obligation of the airline.

The Centre has also invited "Expression of Interest" for strategic divestment of the carrier's ground handling subsidiary Air India Air Transport Services Ltd (AIATSL) which has been transfeered to the SPV.

The disinvestment proceeds from the sale will be used to pay off the debt incurred by the SPV.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Infosys 650.60 1.10
Yes Bank 51.20 -1.16
RBL Bank 259.15 -9.69
Reliance 1,392.40 -1.54
Axis Bank 714.85 0.29
Company Price Change %Gain
Infosys 650.75 1.16
Yes Bank 51.25 -1.06
IRCTC 900.40 6.52
RBL Bank 259.25 -9.64
Indiabulls Hsg 206.20 -5.50
Top Gainers
Company Price Change %Gain
HCL Tech 1,095.15 2.88
Eicher Motors 20,521.20 2.71
Maruti Suzuki 7,440.25 2.54
SBI 275.45 1.83
Titan Company 1,348.65 1.44
Company Price Change %Gain
HCL Tech 1,095.65 2.93
Maruti Suzuki 7,439.50 2.55
SBI 275.50 1.87
Hero Motocorp 2,712.25 1.45
HDFC 2,144.50 1.35
Top Losers
Company Price Change %Gain
Adani Ports 396.10 -5.86
Bharti Airtel 360.35 -3.68
Zee Entertain 242.10 -3.33
Vedanta 146.25 -1.94
Grasim 743.15 -1.71
Company Price Change %Gain
Bharti Airtel 360.50 -3.66
Vedanta 146.10 -1.95
ONGC 141.95 -1.53
Reliance 1,392.85 -1.51
Yes Bank 51.25 -1.06

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results