21 Jul 2017

Disinvestment of Air India

The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 28.06.2017 has given in-principle approval for considering strategic disinvestment of Air India and its five subsidiaries and constitution of Air India Specific Alternative Mechanism.;
To implement the decision of CCEA, appointment of Transaction Adviser, Legal Adviser and Asset Valuer shall be taken up as per terms and conditions and scope of work of Advisers/ Valuer in accordance with the model RFPs suggested by the Department of Investment and Public Asset Management.

The domestic market share of Air India for the FY 2016-17 is 14.2% and in the current FY the domestic Market Share of AI for the month of May 17 is 13.0%. The total debt of Air India Ltd as on 31st March 2017 is Rs 48,876.81 crores (Prov).The Net Loss of Air India(AI) during the last three Financial Years as per audited accounts is as follows:

Year              Net Loss      Financial assistance
                   (Rs. Crores)   provided (Rs. Crores)
2015-16        3836.77          6000
2014-15        5859.91          5780
2013-14        6279.60          3300

To implement the CCEA decision, an Air India Specific Alternative Mechanism has been constituted which will decide the course of further action.
This information was given by the Minister of State for  Civil Aviation Shri Jayant Sinha in written reply to a question in Lok Sabha. 

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