NEW DELHI: The transaction adviser for Air India’s divestment has suggested four options to the government regarding the struggling airline’s future that range from shutting it down to further reducing the debt of over Rs 23,000 crore that bidders need to take on and letting them choose a level they find viable.
It is reliably learnt that the four options suggested by the adviser, Ernst & Young India, to the inter-ministerial group are: 1) Keeping the debt level at Rs 23,286 crore or reducing it further while changing the timelines; 2) Assigning no pre-fixed debt level and letting bidders quote a combined debt and equity value; 3) Government continuing to run AI for 2-3 years; 4) Winding up AI.
The options come in the wake of the pandemic-induced sharp downturn in the airline business globally.
