“The net worth would have fallen even more (if the sale had been postponed). Given that the industry was only expected to recover in 2023-24 and the amount of uncertainties, the government needed to factor in the cost of supporting Air India, which was a minimum of Rs 20 crore a day. In addition, there would have been a greater depreciation and obsolescence of assets, ”he said. Tuhin Kanta Pandey, Secretary of the Department of Investments and Management of Public Assets (Dipam).
Pandey, who oversaw the sale, said this was the best deal the government could get given the huge loans and losses from the beleaguered airline. He said that safety valves have been incorporated into the transaction to ensure that the interests of the Tatas they are protected in terms of additional additions to the liability.
In addition, the terms provide for Air India to deliver a specified number of aircraft in fully operational condition. For example, 58 of the A-320 aircraft have to be fully airworthy. While the new owners will have access to three airline-owned buildings for two years, the apartments assigned to employees will need to be vacated within six months as non-essential assets, such as real estate, including the iconic Air India building at Nariman Point. from Mumbai. , they are not part of the deal.
Pandey also said that in the future, the Center will end the mandate for government officials to fly with the national airline, while adding that the sale will not affect Air operations. India one, which flies the president and prime minister, like the Indian Air Force has started to run them. It is now called India One. And, as regards the execution of rescue flights, such as that of Vande Bharat, the cost of the operations was in any case reimbursed to the airline.