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Air India a great asset, buyer will use an iconic brand: Puri
New Delhi: Terming sale-bound Air India and two of its subsidiaries as great assets, Civil Aviation Minister Hardeep Singh Puri on Monday said that the buyer of the airline would be using the iconic brands.
The Minister said that due to its accumulated debt of about Rs 60,000 crore, Air India’s financial position could be described as very fragile but a private company can turn it around and make profitable.
After failing to attract a single bid in 2018, the government has this time sweetened the offer. It has proposed to take off a major chunk of the airline’s debt and liabilities, besides being ready to divest its entire stake in Air India, and its low-cost subsidiary Air India Express.
The ground-handling joint venture AISATS in which the flag carrier holds 50 per cent stake is also on the block.
The liabilities to be retained in Air India would be equal to certain current and non-current assets. Considering the combined figures as on March 31, 2019, the liabilities retained would be around Rs 8,771.5 crore.
The remaining debt and liabilities of Air India and Air India Express will be allotted to special purpose vehicle Air India Assets Holdings Ltd (AIAHL).
The contingent liabilities related to statutory and government dues will be indemnified by the government.
The Aviation Minister said that debt on the books of Air India at the time of transaction would be frozen at Rs 23,286.5 crore which is equivalent to the written-down value of the combined assets of Air India and Air India Express.
All land and building assets including paintings, arts and artefacts are not part of the transaction. However, certain land and buildings at Delhi, Mumbai airports and corporate offices which are core assets for running the airline will be given to the new investors on right-to-use basis for a limited period, the Minister said.
The government has also committed to pay certain employee-related dues.
The bidding structure on forming the consortium has been eased compared to last time. The financial capability of prospective investors has also been made more attractive by lowering the networth criteria to Rs 3,500 crore and networth qualification of investor based on the strength of its affiliates.
Puri said that government had learnt valuable lessons after its first bid to sell Air India failed.
“We analysed the critical areas to make the current disinvestment bid more attractive to the prospective interested bidders,” he said.
The Modi government’s move to sell Air India and its subsidiaries had failed in 2018 as not a single private party evinced interest. While it had earlier offered 76 per cent stake in the airline along with management control, the government has offered to sell its entire stake in the airline this time.
As the government proposed to hold 24 per cent stake in the company and corresponding rights, many prospective buyers had apprehensions about interference and hence, stayed away from the bid process. High amount of debt and adverse macro environment such as high fuel prices were cited as major reasons for the no-show.
Global consultancy EY is the transaction advisor for the strategic disinvestment of Air India.
As per preliminary information memorandum (PIM) inviting the EoI, Air India is one of the most extensive flight service providers in India with network coverage of 98 destinations (56 domestic destinations with around 2,712 departures per week and 42 international destinations with around 450 departures per week).
The airline offers 75 additional destinations through its secondary network of code share operations covered under 25 code share agreements with foreign carriers.
The government on Monday invited expression of interest (EoI) from prospective buyers of Air India and two of its subsidiaries.
Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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