Air India's new privatisation challenge — competition from global counterparts looking to sell stakeAir India has run into a debt of Rs 50,000 crore by some estimates and the special purpose vehicle (SPV) named Air India Assets Holding Limited (AIAHL) has mopped up Rs 21,985 crore by way of bond issues since September 16 with the proceeds being utilised to repay the debt of the national carrier.
But there is confusion about how the entity will be sold. Will an airline be interested in all its units? Probably not. Will it be interested in parts? Most certainly yes.
Like Air India, many other government owned carriers are in the market for privatisation and they are around for a very long time without success.
fter a failed attempt before the May elections, the government seems determined to press ahead with the disinvestment of Air India. Trade unions, analysts, consultants and political watchers have all taken sides in the ‘should the government sell Air India’ or ‘should it retain Air India’ debate. But the real question is can the government sell the airline?
Air India has run into a debt of Rs 50,000 crore by some estimates and the special purpose vehicle (SPV) named Air India Assets Holding Limited (AIAHL) has mopped up Rs 21,985 crore by way of bond issues since September 16 with the proceeds being utilised to repay the debt of the national carrier.
There is confusion about how the entity will be sold. Air India comprises the flagship airline, low-cost subsidiary Air India Express, a regional carrier named Alliance Air that operates only ATR turboprop aircraft. Together, there are 120 aircraft. The other arms are ground handling, engineering and hotel along with stakes in the catering unit!