Today’s LiveMint carries
following news :
Air India’s debt could turn out to be 40% higher than previously
expected as the airline’s books are combed even as the government has received
the first foreign interest in the airline, civil aviation minister Ashok
Gajapathi Raju said.
“When our exercise of
calculating Air India’s debt began, we found that the sum was hovering around
the Rs 50,000 crore mark. But I won’t be surprised if the total
debt reaches Rs70,000 crore. Since people are looking at the books carefully, they may find more,”
the minister told Network 18 in an interview published on Sunday.
Air India had been estimated to
have a total debt of about Rs 48,877 crore at the end of March 2017, of which
Rs 17,360 crore is aircraft loans and Rs 31,517 crore is working capital loans.
“According to me, Air India
is a debt trap. I said as much in Parliament as well. As far as our account
books are concerned, we held an internal meeting where we saw that this
accounting year is sorted for us as a part of our own dividends that we get will
be used up. The next accounting year needs to be looked into,” he added.
“Another foreign operator has
also shown interest in buying 49% stake. So there is certainly a lot of
interest” in Air India, the minister said, without disclosing the name.
Civil aviation secretary R.N.
Choubey told Mint that a foreign firm has sent “unsolicited”
letter of interest for Air India. Foreign firms can own 100% of an Indian
airline but foreign airline firms can own only 49% of an Indian airline.
This month, the government had
also eased rules allowing foreign airlines to buy a stake of up to 49% in Air
India with prior government approval but with the caveat that substantial
ownership and effective control of Air India will remain with Indian nationals
as is the case with all domestic airlines.
IndiGo, run by InterGlobe
Aviation Ltd, and Tata group have shown interest in Air India’s operations.
Turkey’s Celebi Aviation
Holding, Bird Group, Menzies Aviation Plc and Livewel Aviation Services Pvt.
Ltd have also shown interest in the national carrier’s subsidiaries.
Air India has a fleet of about
140 planes, with a 17% share of traffic on routes linking India to
international destinations and about 13% share of the domestic market.
The national carrier, which is
part of the world’s biggest airline grouping Star Alliance, also has prime
slots at airports across the world along with land banks and buildings, among
its assets.
The government hopes to invite
expressions of interest from companies after Union Budget 2018, Mint reported
on 9 January.
Consulting firm CAPA Centre for Aviation said this month that it
expects “significant interest from foreign airlines” as also “4-6 serious bids
for AI, subject to bid conditions”.
Last June , Shri Raju had told a TV anchor :
“ There are hardly any bakras around, so to
get one is difficult and businessmen are businessmen “
After his today’s revelation
about Air India’s debt position , I will not be surprised if Shri Raju fails to find
that proverbial “ Bakra “ , who is willing to buy Air India, unless the
government goes beyond the tinkering ( eg : splitting Air India into 4 smaller
entities ) and accepts suggestions that I made in my following blog / email :
Findinga Bakra ? Possible ? [ 04 June
2017 ]
29
Jan 2018
www.hemenparekh.in
/ blogs
No comments:
Post a Comment