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AI settlement between 4 options suggested for sale by advisor


NEW DELHI: Air India Divestment Transaction Adviser has suggested four options to the government regarding the future of the distressed airline ranging from shutting it down to further reducing the Rs 23 billion plus debt that bidders must assume and let them choose a level. find it viable.
It is known with certainty that the four options suggested by the adviser, Ernst & Young India, to the inter-ministerial group are: 1) Maintain the debt level at Rs 23,286 crore or reduce it further while the terms are changed; 2) Do not assign a predetermined level of debt and allow bidders to quote a combined value of debt and equity; 3) The government continues to administer AI for 2-3 years; 4) End AI.
The options arise from the sharp pandemic-induced slowdown in the airline business globally.
Government hopes artificial intelligence will find a bidder as long-term transport demand grows
Aviation Minister HS Puri had recently reiterated in Parliament that the choice “is between privatizing or closing” Air India. Based on the suggestions, the core group of secretaries and the ministerial panel handling the sale of the cash-eating national airline will decide the future course of action, although it is unclear whether the government will be able to decide on the long-delayed privatization during the current fiscal year.
The pandemic has left all the world’s airlines, including those deemed potential AI bidders, struggling to survive. The fate of Indian companies, including potential bidders, has also suffered a severe recession and it remains to be seen if they are keen to take on AI. AI has a combined debt and liability load of nearly Rs 90 billion.
At the same time, the Covid-19 pandemic is expected to drive demand for long- to mid-range nonstop travel. To reduce touchpoints, people will now be wary of taking connecting flights from the Gulf or Southeast Asia, preferring to fly non-stop between India and North America, Europe, Australia and Africa.
For this reason, the heads of the Ministry of Aviation have hoped that AI will find a bidder this time.

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