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Epaper Saturday, December 04, 2021

Business

Air India CMD asks dept heads not to change any policy related to creditors, staff

November 16, 2021 09:10 AM

New Delhi, Noting that Air India disinvestment is in final stage with the signing of share purchase agreement (SPA) with the Tata group, airline Chairman and Managing Director Rajiv Bansal has written to department heads, asking them not to change any policy with respect to creditors, which could have adverse impact post-closing of the deal.

The senior airline functionaries have also been directed not to change the policy or practice pertaining to employees.

Among other directions in the don'ts list, the department heads have been asked not to increase the creditor limit granted to any of its customers.

"In case any deviations are necessary to the above and certain actions have to be taken contrary to the above to comply with statutory obligations under the Aircraft Act 1934 and the rules, orders, direction, regulations and notifications thereunder, then specific consent of the strategic partner (SP) is required," Bansal has said.

UNI has seen the letter sent by Bansal on November 8, 2021.

He further said that in such case a reference may be made to Special Cell who will take the necessary approval and convey the decision in the matter.

"Special cell will take the approval of DF (Director, Finance)/CMD/SP before conveying their approval," he stated.

Both Air India and its subsidiary Air India Express will take all reasonable steps to preserve and protect its business and assets and promptly inform the representative in writing of any material adverse effect on its business.

As per the directive, the airline management would ensure compliance with scheduled maintenance obligations.

Tata group has won the bid to acquire flag carrier Air India along with its subsidiary Air India Express and its ground-handling joint venture AISATS for Rs 18,000 crore.

As per the deal, it will retain Rs 15,300 crore of Air India's debt and pay Rs 2,700 crore cash to the government. The salt-to-software conglomerate is expected to take control of the airline by January, 2022.

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