Govt to divest 76 PC in AI, invites EoI

30 March, 2018, 00:26 | Author: Tina Rodriquez
  • Government wants to sell 76% stake in loss-making Air India transfer management control

The successful bidder would need to retain its stake in Air India and management control of the airline for at least three years, according to the government document.

The process is being monitored by Air India-Specific Alternative Mechanism headed by Finance Minister Arun Jaitley.

The Ministry of Civil Aviation has sought Expression of Interest (EoI) for the stake sale in the loss-making carrier and two of its subsidiaries.

The airline is under a massive debt burden of over Rs. 50,000 crore.

Modi's cabinet gave the go-ahead past year to sell the loss-making flagship airline after successive governments spent billions of dollars to keep it solvent. With its current domestic market share at just over 13 per cent, the government simply has no reason to stay invested in this so-called national carrier.

Even as the Air India has begun its thrice a week service to Tel Aviv in Israel flying over Saudi airspace, the national carrier El Al airline announced that it has approached Supreme Court terming it the deal to be unfair.




An open comparative bidding process will determine the new buyer and the disinvestment process is expected to be completed by December 2018.

Air India was founded in the 1930s and is known to generations of Indians for its Maharajah mascot.

Among other conditions, the selected bidder would be required to "lock-in its entire shareholding in Air India and in the special objective vehicle (in case investment in AI is made through a special goal vehicle by a consortium or otherwise), up to the expiry of 3rd anniversary of the consummation of the proposed transaction". "Slots can be utilized to take benefit of India's favorable geographic position in global air travel market and develop hub for worldwide operations".

So Prime Minister Narendra Modi will win plaudits by selling Air India Ltd., the national carrier, to a new controlling shareholder. Government of India (GoI) owns 100 per cent equity of Air India.

Despite this enormous task of turning around an airline which has accumulated losses of Rs 27,231 crore between 2012-13 and 2016-17, and even in 2016-17 posted a loss of Rs 5,765 crore on revenues of Rs 22,177 crore, there will be many that will be interested.

Besides IndiGo, aviation industry majors SATS, Bird Group and Celebi have shown interest but in buying Air India's ground handling unit.

Recommended:



Popular

Grab acquires Uber's share of business in Southeast Asia
According to Uber in San Francisco, selling Southeast-based Uber is a measure to cut potential losses proposed by 2019. In China , Uber has sold off its local business to competitor Didi Chuxing , also taking a stake in the Asian firm.

Waymo adds 20000 Jaguar electric SUVs to its self-driving auto service
Waymo's planned ride-hailing service poses a potential threat to Uber and Lyft, the early leaders in that still-developing field. Arizona governor Doug Ducey ordered an indefinite suspension of Uber's public road testing of driverless cars in the state.

Motorists warned on Easter traffic chaos with snow, rain forecast
That included one day where the temperature reached 74 degrees (on April 4) and one day where it reached 81 degrees (on April 10). We'll get through most of Wednesday with dry conditions, but clouds will hang around along with cool temperatures.

Who Is Bailey Davis? Info On Cheerleader's Lawsuit Against Saints
Always had to double check for Instagram posts, we were always checking on each other, you know, 'maybe don't post that. Discrimination is to such an extent that the cheerleaders have to leave a restaurant where a player turns up.

Renshaw added to Australia squad for final South Africa Test
Cricket Australia chief executive James Sutherland has flown to South Africa and is expected to make an announcement Wednesday regarding the findings of the investigation.

After Fatal Uber Incident, Nvidia Defers Autonomous Car Testing On Public Roads
Uber proactively suspended self-driving operations in all cities following the accident. Nvidia is temporarily suspending its self-driving auto tests on public roads worldwide.

Russian Federation mall fire: Shopping centre exits 'were blocked'
The Kremlin issued a statement saying Mr Putin "expressed his deep condolences to the relatives and loved ones of those who died". At least 64 people have died following a fire at a shopping centre and entertainment complex in Russian Federation .

Commerce Dept. to include citizenship question on United States census
They've held press conferences and made it a point to question Ross about his thinking during appearance at congressional hearings.

First direct flight from Australia to London touches down
Aviation consultant John Strickland said the launch of the flights is a significant moment for the airline industry. The aircraft has a vibrant livery based on the artwork Y am Dreaming by Indigenous artist Emily Kame Kngwarreye.

Tiffany Haddish Throws Gut-Wrenching Jabs at Mo'Nique
After Beyonce confirmed to Haddish that she had in fact been bit in the face, Haddish was ready to confront the actress. This included biting Beyonce , prompting the pop star to storm away, grab Jay-Z and head to the back of the room.