Air Tickets
  Tourist Destinations
  Discover India
  Eco Tourism
  Indian Recipes
  Travel News

Debt biggest challenge for Air India's disinvestment

The Group of Ministers headed by Finance Minster Arun Jaitley will take a call on key issues that will make debt-laden Air India's stake sale to private players more attractive. The Ministerial group will consider hiving off Air Indias assets and a portion of its non-aircraft debt to a special purpose vehicle (SPV) as a first step toward clearing up its balance sheet. The Civil Aviation Ministry had proposed forming a SPV housing a substantial portion of its working capital loan and assets, a senior ministry official said, on the condition of anonymity. The sale of Air India's prime real estate assets will help in meeting its liabilities, the source said. Air India has a total debt of around ₹52,000 crore which comprises of ₹22,000 crore as aircraft loan and the rest as working capital loan and other liabilities.

Home | Send To Friend | Contact Us | Related Links
© 2006 Travel Informations India