New Delhi, November 27: The Centre today reviewed the Air India privatisation situation in Group of Ministers meeting. According to sources, Civil Aviation ministry has decided to proceed with the strategic sale with the divestment of 100% of the ground holding services of Air India which is Air India Air Transport Services Limited (AIATSL). Yesterday also reports surfaced that the government is planning to complete the sale of Air India ground handling subsidiary AIATSL by March 2019. Cash-Strapped Air India Gets Rs 1000 Crore Lifeline From Small Savings Fund.

Earlier this month, Civil Aviation Minister Suresh Prabhu admitted that the attempt to privatise the loss-making Air India was ill-timed. Air India has been making losses since its merger with Indian Airlines in 2007. Presently, it is reeling under a huge debt burden of over Rs 50,000 crore, and the government is planning to sell its non-core subsidiaries of the national carrier.  Air India Delays Salaries for Fifth Month in a Row.

Meanwhile, Debt-ridden Air India has revived its plans to raise Rs 500 crore in short-term loans (STLs) besides mopping up another Rs 6,100 crore by way of sale and leaseback of seven of its wide-body planes, including six Boeing 787 (Dreamliner) aircraft.  In September, the airline had invited bids for raising Rs 500 crore through STL to meet its working capital requirements with September 10 as the deadline for submission of bids.

(With inputs from PTI)

(The above story first appeared on LatestLY on Nov 27, 2018 09:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).