Air India May Not Attract Bid In Current Form: Ashok Gajapathi Raju


Air India is a good airline but its finances are bad, making it unattractive to bidders in its current form, says union civil aviation minister Ashok Gajapathi Raju. The government is working on various options and expects to complete divestment of the flag carrier by the end of 2018, Raju tells ET. Edited excerpts:

You have said Air India’s debt is much more than predicted. Can you explain?
The airline has debt and dues to be paid to vendors. The airline owes money to (vendors) like oil marketing companies, the Airports Authority of India (AAI) and many more. Now, when you add the dues with debt, total liabilities would be much more. Fact is that the finances of Air India are bad.It is a good airline otherwise. In this existing form, it is highly unlikely that anyone will pick it up. If you try and bid out Air India in the same way as it is today … I do not think it will make economic proposition for anyone. Read More…

You may also read!

Bengaluru’s Kempegowda airport becomes “world’s first” to bag awards for both arrivals and departures

Bengaluru’s Kempegowda International Airport has become the “world’s first” airport to secure the Airports Council International’s Airport Service Quality

Read More...

Negotiations better than insolvency: Govt official on Jet Airways

As Jet Airways battles acute financial woes, a senior government official Monday said a “good outcome” from the negotiations

Read More...

JF-17 Thunder, not F-16, was used against India: Pakistan Army

Pakistan’s military has said it used JF-17 Thunder combat aircraft developed jointly with China were used in the retaliation

Read More...

Leave a reply:

Your email address will not be published.

Mobile Sliding Menu