Three-pronged strategy cleared for Air India disinvestment

The Cabinet committee of economic affairs (CCEA) has finalised a 3-pronged strategy for the disinvestment of Air India — demerger and strategic disinvestment of 3 profit making subsidiaries, hiving off of certain assets into a special purpose vehicle and treatment of unsustainable debts of the ailing carrier. The 3 profit-making subsidiaries are Air India Express, the ground handling company Air India Air Transport Services Limited and Air India’s joint venture with SATS Limited for ground handling activities in Delhi, Mumbai, Trivandrum and Bengaluru. The process will be piloted by the Air India Specific Alternative Mechanism (AISAM) comprising finance minister Arun Jaitley, civil aviation minister Ashok Gajapathi Raju, transport minister Nitin Gadkari, Railways minister Suresh Prabhu and power minister Piyush Goyal. <br/>