The airline would be divided into core airline business, regional arm, ground handling and engineering operations, according to a report by Bloomberg
NEW DELHI – India will break up its debt-laden carrier Air India into four separate companies and offer at least 51% in each of them as part of a divestment plan proposed by the government, Bloomberg reported on Monday.
The airline would be divided into core airline business, regional arm, ground handling and engineering operations, the report added.
The core airline business comprising Air India and Air India Express, the low-cost overseas arm, will be offered as one company, and the process will be completed by the end of 2018, Bloomberg reported, quoting junior aviation minister Jayant Sinha.
“The aviation sector is a very fast growing sector, with really exciting opportunities for all participants, so we felt all of this will unlock growth and competitiveness of Air India group,” Sinha said. “We expect it to be a very bright future for its employees.”
Last week, India had cleared a proposal to allow foreign investors to own up to 49% in the carrier.
Air India could not be immediately contacted for comments.
