View: Govt's zero-debt offer for Air India can make it a very attractive proposition
With Ratan Tata back at the helm of the group — and a keen aviator to boot — the stars may well be aligned to bring Air India back into the family.
Synopsis
The zero-debt offer is important because the asset value of many high-value purchases and leases of aircraft are suspect, and have to be renegotiated with the lessors who have leased the aircraft, with many purchases having to be converted to sale and lease back.
That the Tatas have shown interest in acquiring Air India on Monday is good news. The earlier bid invitations from suitors for the ageing bride drew a blank repeatedly. It is only befitting that the great airline, now decrepit, may go back into the hands of the business house that founded and nurtured it in its formative years.GoI can snatch any jewel from anyone and appropriate it, as it did when it nationalised Air India. But on the flip side,
BY
GR Gopinath
ET CONTRIBUTORS
5 mins read
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