AIR INDIA

air-india-divestment-options-uncertain

Air India divestment options uncertain

The government is given four options on dealing with the divestment issue of the debt-ridden Air India. However, it is uncertain whether the government may be able to work on any of the given options in FY21.
A report submitted by Ernst & Young India, which is the transaction adviser on the issue, to the inter-ministerial group set up to coordinate and sort out issues regarding AI divestment, contains the following four options:
First, keeping the debt level at Rs 23,286 crore or reducing it further while changing the timelines.
Second, assigning no pre-fixed debt level and letting bidders quote a combined debt and equity value.
Third, the Government should continue running AI for the next 2-3 years.
Fourth and last, winding up AI thereafter.
The report points out that in view of the corona virus-induced global and domestic economic downturn, potential investors in the airline business are seen struggling to manage their own existing businesses. In this climate, it is difficult to predict how the divestment proposal of AI may be received, considering the company has a combined debt-cum-liabilities burden of about Rs 90,000 crore.
“The choice is between privatizing or closing down Air India,” Aviation Minister H. S. Puri recently stated in the Parliament. Based on the suggestions, the core group of secretaries and the ministerial panel handling the sale of the national carrier will decide the future course of action although it is unclear if the government will be able to decide on the much-delayed privatization during the current year.

19 Sep 2020
air-india-appointment-orders-of-director-personnel-commercial-issued

Air India: Appointment orders of Director, Personnel & Commercial issued

The Ministry of Civil Aviation, on July 13, 2020, issued the appointment orders of Meenakshi Mallik (ED, Commercial) Air India Limited appointed as Director (Commercial) and Amrita Sharan (ED, Industrial Relations) India Limited appointed as Director (Personnel) in Air India for a period of three years or till the date of superannuation.

The ACC headed by PM Modi had endorsed these two appointments on 08 June 2020. Following the concurrence of President of India, the Ministry of Civil Aviation Tuesday evening issued their appointment orders 

While working as ED, Industrial Relations Amrita Sharan was also holding additional charge of the post Director (Personnel). With her new assignment, Sharan became the first women Director (Personnel) of Air India and a member of the Board of Directors of Air India Limited.

Meenakshi Malik has been among the key persons in charge of the Vande Bharat Mission.

16 Jul 2020
air-india-divestment-options-uncertain

Air India divestment options uncertain

By IndianMandarins 19 Sep 2020

The government is given four options on dealing with the divestment issue of the debt-ridden Air India. However, it is uncertain whether the government may be able to work on any of the given options in FY21.
A report submitted by Ernst & Young India, which is the transaction adviser on the issue, to the inter-ministerial group set up to coordinate and sort out issues regarding AI divestment, contains the following four options:
First, keeping the debt level at Rs 23,286 crore or reducing it further while changing the timelines.
Second, assigning no pre-fixed debt level and letting bidders quote a combined debt and equity value.
Third, the Government should continue running AI for the next 2-3 years.
Fourth and last, winding up AI thereafter.
The report points out that in view of the corona virus-induced global and domestic economic downturn, potential investors in the airline business are seen struggling to manage their own existing businesses. In this climate, it is difficult to predict how the divestment proposal of AI may be received, considering the company has a combined debt-cum-liabilities burden of about Rs 90,000 crore.
“The choice is between privatizing or closing down Air India,” Aviation Minister H. S. Puri recently stated in the Parliament. Based on the suggestions, the core group of secretaries and the ministerial panel handling the sale of the national carrier will decide the future course of action although it is unclear if the government will be able to decide on the much-delayed privatization during the current year.

air-india-appointment-orders-of-director-personnel-commercial-issued

Air India: Appointment orders of Director, Personnel & Commercial issued

By IndianMandarins 16 Jul 2020

The Ministry of Civil Aviation, on July 13, 2020, issued the appointment orders of Meenakshi Mallik (ED, Commercial) Air India Limited appointed as Director (Commercial) and Amrita Sharan (ED, Industrial Relations) India Limited appointed as Director (Personnel) in Air India for a period of three years or till the date of superannuation.

The ACC headed by PM Modi had endorsed these two appointments on 08 June 2020. Following the concurrence of President of India, the Ministry of Civil Aviation Tuesday evening issued their appointment orders 

While working as ED, Industrial Relations Amrita Sharan was also holding additional charge of the post Director (Personnel). With her new assignment, Sharan became the first women Director (Personnel) of Air India and a member of the Board of Directors of Air India Limited.

Meenakshi Malik has been among the key persons in charge of the Vande Bharat Mission.

air-india-ntpc-posoco-and-mrpl-get-new-director

Air India, NTPC, POSOCO and MRPL get new Director

By IndianMandarins 08 Jun 2020

The NaMo administration on Monday cleared the appointment of five board-level officers in Air India, NTPC and POSOCO:

  1. Sudhanshu Shekhar Barpanda (ED, POSOCO) was appointed to the post of Director (Market Operation), Power System Operation Corporation (POSOCO) Limited till the date of his superannuation i.e. 31.05.2024.
  2. Chandan Kumar Mondol (ED, NTPC) was appointed to the post of Director (Commercial) NTPC till the date of his superannuation i.e. 31.01.2023.
  3. Ms Meenakshi Mallik (ED, Commercial, Air India) was appointed to the post of Director, Commercial, Air India for a period of three years of till the date of her superannuation or till the date of a further order.
  4. Mrs Amrita Sharan (ED, IR, Air India Limited) was appointed to the post of Director, Personnel, Air India Limited for a period of three years or till the date of her superannuation or till further order.
  5. Nanduri Srinivas (IRTS:1989) was appointed to the post of Director, Operations and Business Development, in the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) for a period of five years or till his superannuation. Presently, he is working as Executive Director in National Thermal Power Corporation (NTPC).
  6. Sanjay Varma (GM, MRPL) was appointed as Director (Refinery) in Mangalore Refinery and Petrochemical Limited (MRPL) for a period ending 30.06.2024 i.e. till his superannuation.

air-india-pilot-unions-threaten-not-to-support-airline-s-normal-operations

Air India pilot unions threaten not to support airline’s normal operations

By IndianMandarins 25 May 2020

Though the government has brought every state onboard for allowing domestic flight operations, Air India pilot unions IPG and ICPA threatened they might not be able to extend support to the airline’s ‘normal operations’ and in the matter of flight duty and time limitations (FDTL). They have alleged that financial and other issues of employees remain unresolved. 

These unions representing pilots operating Boeing and Airbus aircraft of the airline in a joint letter to the personnel department sought to know the outcome of the various cost-cutting measures that Air India initiated in March to deal with its precarious finances.

The IPG and ICPA letter comes ahead of the resumption of commercial passenger services on domestic routes from May 25, which were suspended about two months ago along with international services in the wake of COVID-19 and subsequent lockdown imposed by the government on March 25.

Air India had announced a host of measures to reduce costs, including withdrawing special allowances for pilots and other facilities for its officials, a 10 percent deduction in allowances (excluding basic pay, HRA and variable dearness allowance) in respect of all employees, except cabin crew, for a period of three months effective from March.

pm-lauds-air-india-for-evacuating-indians-puri-praises-ai-s-pilots-as-well

PM lauds Air India for evacuating Indians, Puri praises AI's pilots as well

By IndianMandarins 23 Mar 2020

Prime Minister Narendra Modi praised Air India for evacuating Indians stranded abroad amid the COVID-19 pandemic.

His latest tweet reads, “Extremely proud of this team of @airindiain, which has shown utmost courage and risen to the call of humanity. Their outstanding efforts are admired by several people across India. #IndiaFightsCorona”

Union Civil Aviation Minister Hardeep Singh Puri  writes in his tweet, “The crew of @airindiain Boeing 777 led by Capt Swati Raval & Capt Raja Chauhan responded to the call of duty & displayed exemplary determination by airlifting 263 Indians, mostly students, stranded in Rome.”


air-india-disinvestment-delayed-further-due-to-coronavirus

Air India disinvestment delayed further due to Coronavirus

By IndianMandarins 14 Mar 2020

Covid-19 outbreak has left its impact on disinvestment process of Air India as the government has deferred the last date to submit EoIs for the national carrier by more than a month to April 30 which was to expire on Match 17, 2020.

It was requested by interested bidders and due to prevailing situation arising out of Covid-19. The decision was taken after India announced that it is suspending all visas till April 15.

It would be impossible for foreign bidders to function normally with the closures and suspension. Hence the extension has been given and there is a possibility of further extension if the situation doesn’t improve. There is little chance of the process being successful in the current situation which has already failed once.

now-nris-can-acquire-100%-stake-in-air-india

Now NRIs can acquire 100% stake in Air India

By IndianMandarins 05 Mar 2020

The Centre has decided that NRIs can acquire a 100 percent stake in the public sector aviation company Air India as the decision was taken by the cabinet chaired by PM Narendra Modi. The government is looking for AI disinvestment.

The cap for the NRIs to acquire a stake in the national airlines was 49 percent earlier. It was announced that regarding the strategic sale of Air India, now NRIs can acquire 100 percent of stake in the airlines.

The government has initiated the process of divesting its share from Air India a long time back and is looking for suitable bidders. An attempt by the government to divest its stake in AI failed due to not getting potential buyers.

govt-to-retain-air-india's-international-bilateral-flying-rights-for-6-months

Govt to retain Air India's international bilateral flying rights for 6 months

By IndianMandarins 21 Feb 2020

The government which is planning to sell the national career as it has has incurred huge losses, various governments in the past had given preferential treatment to Air India while allocating bilateral flying rights. These rights specify the number of seats or frequency of flights that can be operated by a country with the other. It is signed by India with nations across the world.

With the signing of air-service agreements with 115 nations by India, millions of passengers every week to be flown by airlines between destinations to and from these nations. These sovereign rights are exclusively owned and allocated by the Indian government. The government will retain Air India's international bilateral flying rights for only six months which may dis-incentivise potential buyers if the rights are re-allocated to other airlines after sale.

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