InvestorQ : What is the latest status on Air India and does it look likely this year?
Mary Joseph made post

What is the latest status on Air India and does it look likely this year?

Answer
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Arusha Ray answered.
3 weeks ago


With the second half of the year already having started and the first half lost to COVID-19, the government is looking at its divestment plans on a war footing. One of the critical components of this divestment plan is the sale of Air India.

Now, the Government of India is likely to be a lot more liberal so that it can push through the divestment of Air India this fiscal itself. It plans to revise bidding document for Air India and substantially sweeten the deal by the end of October 2020.

Reportedly, under the new model, the bidders may be given the choice to only bid for assets of Air India without the liabilities or the amount of debt may be further reduced from the level of Rs.23,286 crore. It was already halved in the first round.

Unfortunately, COVID-19 has reduced the value of idling aircraft forcing the government to look at a better model to divest. The attempt to divest Air India in Mar-18 had failed. Air India sale is key to India getting close to its FY21 disinvestment target of Rs.210,000 crore.