NEW DELHI: Indian carriers may soon be able to offer low fares on a sustainable basis without going bust. The government wants to develop India as a hub for financing aircraft purchases and leasing and also the subsequent maintenance, repair and overhaul (MRO) of this fleet. This will lower the financing cost for airlines and reduce expenses incurred on aircraft servicing as, at present, most aircraft are sent to MROs abroad.
The government will also “re-initiate the process of strategic disinvestment of Air India”, finance minister Nirmala Sitharaman said in her maiden Budget speech on Friday. While Air India (AI) has got Rs 1 lakh allocation, the government is looking at a bond issue of Rs 7,000 crore to partially repay its debt of about Rs 29,000 crore that has been transferred to SPV AI Asset Holdings Ltd.
