Air India Disinvestment Takes Off: 10 Things To Know

Air India Disinvestment Takes Off: 10 Things To Know

"This number shall be further adjusted to account for material business developments post March 31, 2017 for instance purchases/delivery of aircrafts etc". The Minister of State for Civil Aviation added that the government will cede all control of the airline and keep only a residual stake.

Media reports from India suggest a new owner will get the company 's aircraft and about $US5 billion in debt to take part in India's highest-profile asset sale for decades.

The government plans to offload 76% equity share capital of the national carrier as well as transfer the management control.

In turn, the airline holds full stake in Air India Express, while it holds a 50 per cent stake in the joint venture Air India SATS Airport Services (AISATS).

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Modi's cabinet gave the go-ahead a year ago to sell the loss-making flagship airline after successive governments spent billions of dollars to keep it solvent.

But the proposal, which calls for bids by May 14, is already generating political opposition and the new owners face turning around an airline that has lost money for the past decade.

El Al is trying to force the rescindment of Air India's permit to operate its new Delhi-Tel Aviv service on short routes unavailable to the Israeli flag-carrier.

Air India has six subsidiaries - three of which are loss-making - with assets worth about $4.6 billion. Failing that, they ask that Air India flights that overpass Saudi Arabia be banned.

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Speaking about Air India's employees, Sinha said that a consultation process with respect to their protection is now underway.

Accordingly, one of the four entities will include Air India, its budget subsidiary Air India Express and gateway services and food solutions units AI-SATS.

Given the salt-to-software conglomerate's desperation to be India's No. 1 steelmaker-it seems to have overpaid for bankrupt mills- it's unclear Tata would want to take on another big deal so soon.

As Anurag Kotoky of Bloomberg News has noted, the only potential bidder to have publicly expressed a desire to buy Air India is InterGlobe Aviation Ltd.'s IndiGo, a homegrown low-priced airline that's obviously drawn to the flag carrier's bilateral flying rights and slots at busy airports like Heathrow and John F. Kennedy.

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