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Air India to be Sold Out by the End of 2018, Says Civil Aviation Minister

Air India to be Sold Out by the End of 2018, Says Civil Aviation Minister

Minister of State for Civil Aviation Jayant Sinha laid out a timeline for the strategic disinvestment of state-run carrier, Air India.

“We have said over and over again that from now we expect it to take another six to eight months for the winning bidder to be announced. And thereafter, it will take another few months for the legal closing and the transfer of assets to actually happen,” said Sinha in a conversation with Moneycontrol.

The minister also elaborated that so far, Interglobe Aviation, which runs IndiGo Airlines, is the only airline company to have officially expressed its intent to buy the national carrier.

Air India made a loss of Rs 4,310.65 crore in 2015-16, adding to its Rs 6,280.42 crore loss in the previous financial year. The airline, which is completely owned by the government, is weighed down by a debt of around Rs 52,000 crore.

On whether the government has reached a conclusion as to how much of the debt will be absorbed by them, Sinha explained, “those are decisions that will be made by the audited mechanism under the advice from the transaction adviser which is EY (a consultancy firm).

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