Air India is keen to raise working capital by selling aircraft.
The move will help to reduce Air India's distribution cost by 60 per cent
With over Rs 55,000 crore debt, Air India management has been trying to pare burden by monetising non-core real estate properties.
Indian Hotels Company Ltd (IHCL) net profit rose 15 per cent in the second quarter after excluding the one-off exceptional gain of Rs 307 crore in the previous year. Net profit fell 45 per cent when compared with the previous year's earnings after including a one-off gain.
Embraer sees a lot of opportunities in India in the commercial and business jets as well as military aircraft and eVTOL segments, its CEO Francisco Gomes Neto has said as the Brazilian seeks to strengthen its foot print in the fast growing Indian market. Besides, the company is in talks with IndiGo and Air India to explore the possibility of selling its E-2 aircraft, which can have up to 146 seats.
Two issues dog the sale of the national carrier. One is the $2 billion bank guarantee the winning bidder will need to furnish. The other is the nearly 5000 lawsuits filed against Air India, many of them overseas. Anjuli Bhargava reports.
An official said the government is preparing the financial statements and getting the data room ready for the sales, suggesting that such aspects take time.
'The target for next year is unlikely to be more than that of this year. The more you divest in any cycle, the less your potential pipeline for the next,' said an official. 'The first two issues we want to tackle and complete in FY20 are Air India and Hotel Ashok.'
Air India has recorded 19.5 per cent rise in sales revenue in the Gulf-India route in the past three months, a senior official of the Indian national carrier said.
The promoter-brothers, distant cousins to IndiGo's Rahul Bhatia, are eyeing Air India's ground handling subsidiary to augment their aviation services business even as they make a big play in EVs.
Passenger buying tickets for travel in economy class on 10 domestic sectors will be entitled to one free return ticket
This is a third of Rs 33,992 crore debt that was to be passed on to the new owner during last year's failed divestment process.
Tata Group-owned Air India has informed the Centre that aircraft lessors wish to set up their special purpose vehicles (SPVs) outside India since they aren't enthused about the Indian 'legal structure' and are loath to take risks. Indian airlines have a combined fleet of about 700 planes; over 85 per cent are on lease. A majority of lessors are based in Ireland due to its attractive tax policy, light-touch regulations, and swift legal system.
IDBI Bank, SBI, ONGC & PFC show interest in carrier's central Delhi land. Proceeds from the asset sale would be used to clear the government-owned airline's debt.
Ruia, a chartered accountant whose business ranged from sugar to textiles and heavy engineering to tyres, refused to comment on queries about his interest in Air India.
Falling jet fuel prices and a revival in domestic traffic growth offer the new CMD a once in a lifetime opportunity.
The airline's board met in the national capital on Tuesday, and decided to go in for sale and leaseback of Boeing 787 Dreamliners, due for delivery next month.
As the potential threat of a steep 200 per cent tariff on pharmaceutical imports hangs in the air, analysts and industry insiders feel that focus on exports to non-US regions as well as domestic market will increase as a long-term trend. US President Donald Trump told CNBC's Squawk Box in the first week of August that planned tariffs on import of pharmaceutical products to the US could eventually reach up to 250 per cent.
The Supreme Court has permitted the sale and bursting of green crackers in Delhi-NCR for Diwali, relaxing the ban on green firecrackers as a temporary measure from October 18 to 21. The court has asked pollution control boards to monitor pollution levels and file reports. The order also includes measures to prevent the sale of non-compliant crackers.
India and the United States have agreed to deepen their strategic partnership in several key areas, with President Donald Trump announcing plans to provide India with F-35 fighter jets and billions of dollars in military supplies. The two leaders also discussed energy cooperation, critical technologies, connectivity, and countering terrorism. They agreed to work together on the India-Middle East-Europe Economic Corridor, and Trump noted India's reforms to welcome US nuclear technologies. Prime Minister Modi said the two countries can shape a better world through their cooperation. Both leaders also addressed the Russia-Ukraine conflict, with Modi stressing India's commitment to peace.
Totally, Air India has 27 Boeing 787s on order and will be taking deliveries of 20 of them by end of March 2015.
The initial public offering of LG Electronics India Ltd received 54.02 times subscription on the final day of bidding on Thursday, driven by overwhelming participation from institutional buyers.
'With a less than comely bride and no dowry to speak of, the prospects of landing a good match look bleak, a grim, sinister and no-nonsense prospective father-in-law notwithstanding,' says Anjuli Bhargava.
Apart from the Adani group, the Tata group, the Hinduja group, Indigo and a New York-based fund, Interups, are expected to submit EoIs.
The Indian side would prefer to get S-500 air defence system which has more range than the S-400 but it would require a clearance from the top Russian leadership for its sale, they said.
Singapore Airlines' deal with Tata Sons (Tata) will inject a further SGD 360 million ($267 million) into Air India. It will give SIA a 25.1 per cent stake in the enlarged Air India group following its takeover by Tata and merger with Vistara Airlines. The November 2022 deal between Singapore Airlines and Tata Sons to further inject $267 million into Air India is one of the key strategic initiatives for future growth mentioned in the quarterly financial report. This agreement is still subject to regulatory approval. SIA in the statement said, "The merged entity will be four to five times larger in scale compared to Vistara, with a strong presence in all key airline segments in India.
Air India's entire European operations are carried out with Boeing Dreamliner planes.
US President Donald Trump has threatened to impose tariffs on Apple products if the tech giant does not shift iPhone production from India to the United States. Trump said he expects iPhones sold in the US to be manufactured in America and not India, or anyplace else. He also said that he had a "little problem" with Apple CEO Tim Cook for building manufacturing facilities in India. Cook had previously said that the majority of iPhones sold in the US would have India as their country of origin. Experts say that shifting production to the US would be more expensive than assembling iPhones in India.
In the phone conversation on Tuesday, Singh urged Hegseth to expedite the delivery of GE F404 engines to power the Tejas Light Combat Aircraft, people familiar with the matter said.
By 10 am, Rakshit N Jagdale is already deep into the rhythm of the day, which promises to be a carousel of meetings, calls, and strategic decisions. As managing director of Amrut Distilleries, he balances ritual and ambition, tradition and transformation, like many other legacy players in India's alcoholic beverages sector who are staring at a rosy future.
The decision comes following the appeal by the Delta Airlines, Inc and the Airline Pilots Association of a lower court decision in July 2012 that determined that the Exim Bank improperly approved financing for purchases of certain Boeing aircraft by Air India.
Amid continuing uncertainty over the fate of the national carrier, an official said there is also need for funds to restart operations of 12 grounded narrow-body planes.
LIC had evinced interest to purchase the land at Baba Kharak Singh Marg at around Rs 800 crore.
Sale, leaseback of aircraft fetch Air India $150 million; funds to be used to partly repay bridge loan.
Out of the total amount, Rs 17,359.77 crore is aircraft loan, while Rs 31,517.04 crore is working capital loan.
The last date to submit bids is March 17 but the deadline could be extended if there are requests from potential bidders.
The response to the sale has been overwhelming.
The primary market is set for a busy week as two major companies, Tata Capital Ltd and LG Electronics India Ltd, gear up to launch their initial public offerings (IPOs), collectively worth more than Rs 27,000 crore.
For the AI bid, Interups has joined hands with a few employees of the airline, and plans to raise funds by splitting some of its infrastructure-related assets into an aviation InvIT, which will have underlying assets such as air routes, ground handling, repairs, and training etc.
Air India is planning to tweak its daily service to Australia, to cut losses.
