On October 25, the government signed the share purchase agreement with Tata Sons for the sale of the airline for Rs 18,000 crore. The amount includes payment of Rs 2,700 crore in cash and take over Rs 15,300 crore of the carrier's debt.
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 Pvt Ltd 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 Rs 18,000 crore. The amount includes payment of Rs 2,700 crore in cash and take over Rs 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 per cent stake in equal joint venture AISATS.
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. Bansal is also the Chairman and Managing Director of the national carrier.
Air India has been incurring a monthly loss of more than Rs 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 Rs 61,562 crore. Of the total amount, Talace will take over Rs 15,300 crore, and the remaining Rs 46,262 crore will be transferred to AIAHL.
Besides, non-core assets of Air India, including land and building, valued at Rs 14,718 crore, are also being transferred to AIAHL. Further, liabilities of Rs 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.