Government should divest 100% equity in Air India: Capa

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Mumbai | Published: June 5, 2018 4:27:51 AM

The consultancy firm, in a report ‘Air India Divestment : Next Steps’ released on Monday, said the government should divest 100% equity and only aircraft-related debts should remain on the airline books.

government, air india divestment, capa, air india 100 per cent equityAviation research and consultancy firm Capa (India) says the government should divest 100% equity in the airline and not retain a 24% share in the ailing airline. (PTI)

After the first attempt at selling state-owned Air India to private entities failed as the expressions of interest (EoIs) called for by the government received zero bids, aviation research and consultancy firm Capa (India) says the government should divest 100% equity in the airline and not retain a 24% share in the ailing airline.

It further says the government should pursue the divestment process so as not to derail Air India and get on board with the investors to thrash out the issues and doubts that they have about the government’s proposed sale of the airline.

The consultancy firm, in a report ‘Air India Divestment : Next Steps’ released on Monday, said the government should divest 100% equity and only aircraft-related debts should remain on the airline books. It had held a similar position in October 2017 as it maintains that any continued government involvement would deter investors.

Capa said the ministry of civil aviation needs to engage formally and directly with prospective financial and strategic investors to understand their concerns. It suggested that Air India be placed under special administration to remain focused on operational and financial
performance.

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