New Delhi Dec 28 (IANS) The Union government will not reconsider the decision to divest its stake in the debt-ridden Air India Parliament was informed on Thursday.
According to Minister of State of Civil Aviation Jayant Sinha the Cabinet Committee on Economic Affairs (CCEA) has given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries.
Sinha told the Lok Sabha in a written reply that Inter Globe Aviation Limited has shown interest in acquiring airline operations of Air India and Air India Express.
Subsequent to the CCEA s decision an Air India-specific Alternative Mechanism -- headed by Union Finance Minister Arun Jaitley -- was formed. It has been mandated to guide the strategic divestment process and to decide on key issues such as treatment of the airline s debt and hiving-off of its assets.
The demerger and strategic divestment of its three profit-making subsidiaries the quantum of disinvestment and the universe of bidders is also on the group s agenda.
Recently the government appointed consultancy firm EY as the transaction advisor for the strategic divestment.
Till now budget passenger carrier IndiGo has evinced interest in buying the airline s international operations and its subsidiary Air India Express.
In addition aviation industry majors SATS Bird Group and Celebi have shown interest in buying Air India s ground handling unit.
Currently the airline which is under massive debt burden of Rs 50 000 crore had posted an operating profit of Rs 105 crore in 2015-16.
For the last fiscal (2016-17) the company was expected to report an improved operating profit margin.
The national flag carrier in April 12 2012 got a new lease of life when the then UPA government had approved a Rs 30 000-crore turnaround and financial restructuring package spanning up to 2021.
--IANS
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