Air India sale to be completed by year-end

In 2019, the government set up a special purpose vehicle, Air India Assets Holding Ltd (AIAHL), for holding debt and non-core assets of the Air India group

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Civil Aviation Secretary Rajiv Bansal said that government is making all efforts to complete the disinvestment process of Air India by the end of December this year. Incidentally, Bansal is also the Chairman and Managing Director of the national carrier.

Bansal also mentioned that Air India has been incurring a monthly loss of more than INR 600 crore. Tata group firm Talace Pvt Ltd is the winning bidder for the national carrier, Air India. Last month, on October 25, the government signed the share purchase agreement with Tata Sons for the sale of the airline for INR 18,000 crore.

The amount includes payment of INR 2,700 crore in cash and take over INR 15,300 crore of the carrier’s debt. As of August 31, Air India had a debt of INR 61,562 crore.

Liabilities of INR 15,834 crore towards dues to operational creditors, like those for fuel purchases, as of August 31 would be transferred to AIAHL

In 2019, the government set up a special purpose vehicle, Air India Assets Holding Ltd (AIAHL), for holding debt and non-core assets of the Air India group.

Tatas will acquire along with Air India, low-cost carrier Air India Express and Air India’s 50 per cent stake in equal joint venture AISATS. The airline has 43 wide-body planes, including 27 Boeing 787s. Besides, non-core assets of Air India, including land and building, valued at INR 14,718 crore, are also being transferred to AIAHL.

Further, liabilities of INR 15,834 crore towards dues to operational creditors, like those for fuel purchases, as of August 31 would be transferred to AIAHL.

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