Union government to jointly sell domestic and international business of Air India

The central government has ruled out the possibility of separating the domestic and international airline businesses of Air India to carry out the divestment process and has decided to sell the carrier together with its core aviation assets including aircraft, timing slots and flying rights as well as its two subsidiaries – Air India Express and Air India-Singapore Airport Terminal Services. Further, it has been decided that all non-core assets such as debt amounting to Rs 330 billion against working capital loans, buildings, offices and land will be transferred to a special purpose vehicle (SPV). The appointed consultants have already started identifying properties that will be transferred to the SPV. Meanwhile, it has been decided that the loans against aircraft purchases will be transferred to the company that will buy out the airline. Further, Air India Air Transport Services and Air India Engineering Services will be sold separately.