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29
June 2017
 |
IndiGo and Air India (The Total Investment & Insurance Solutions)
A day after
the Union cabinet gave its in-principle approval for Air India's divestment,
Civil Aviation Minister Ashok Gajapathi Raju said that the budget passenger
airline IndiGo has expressed its interest in participating in the stake sale of
the flag-carrier. The Total Investment
& Insurance Solutions
"There
has been interest shown for Air India. IndiGo has approached the ministry with
a formal expression of interest proposal," Civil Aviation Minister Ashok
Gajapathi Raju told IANS.
"Other
airlines have also shown interest in Air India, but they have not submitted any
formal proposals as yet," he added.
The Total Investment & Insurance Solutions
When
contacted, an official from IndiGo said that the airline was "observing a
silent period".
According to
Civil Aviation Ministry Secretary R.N.Choubey, a formal proposal from IndiGo
was received after Wednesday's cabinet decision on Air India's divestment.
The Union
cabinet's decision on Air India comes after NITI Aayog in a recent report to
the Civil Aviation Ministry recommended strategic disinvestment in the
loss-making Air India.
At present,
the national passenger carrier has a debt burden of more than Rs 50,000 crore.
The airline
in 2015-16 had posted an operating profit of Rs 105 crore. For the last fiscal
2016-17, the company is expected to report an improved operating profit margin.
The flag
carrier had got a new lease of life on April 12, 2012, when the previous
central government under the UPA had approved a Rs 30,000 crore turnaround
(TAP) and financial restructuring plans (FRP) package spanning up to the year
2021. The Total Investment &
Insurance Solutions
Currently,
Air India's portfolio of subsidiaries include Air India Engineering Services,
Air India Transport Services, Alliance Air, Air India Express and the Hotel
Corporation of India. It also has a ground handling joint venture AISATS. The Total Investment & Insurance
Solutions
Apart from
its subsidiaries, the national carrier owns several properties in India and
abroad, operational slots at international airport and priceless art work,
besides a well trained manpower.
According to
the company's website, Air India operates 118 aircraft of various kind. Its
international network consists of 41 destinations across the US, Europe,
Australia, Far East and South East Asia and the Gulf. The Total Investment & Insurance
Solutions
The
airline's domestic network covers 72 destinations, including far-flung areas of
the North-East, Ladakh, Andaman and Nicobar Islands. The Total Investment & Insurance
Solutions
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