Govt to divest 76 PC in AI, invites EoI

30 March, 2018, 00:26 | Author: Tina Rodriquez
  • According to the Air India privatisation plan the government will sell 76% stake in Air India along with 100% stake in Air India Express Ltd and 50% in Air India SATS Airport Services

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:

  • Trump To Replace VA Secretary David Shulkin

    Trump To Replace VA Secretary David Shulkin

    Unlike the rest of Trump's Cabinet, Shulkin's nomination was unanimously supported in a 100-0 Senate vote . David Shulkin's service to our country and to our GREAT VETERANS!" he said on Twitter .

    Some rain today, widespread storms start tonight

    This air mass will significantly drop temperatures by Friday and is also expected to kick off heavier snow for much of Montana. Those hoping for spring sunshine will be disappointed as temperatures will be lower than average and heavy rain is forecast.
    Dow Jones rises 669 points as trade war fears subside

    Dow Jones rises 669 points as trade war fears subside

    CHINA FACTOR: The fears of worsening trade tensions eased after China's government said it is open to negotiating with Washington. In local currency terms, the UK's FTSE 100 remains the worst performing European index year-to-date, down 10.4%.
  • Who Is Bailey Davis? Info On Cheerleader's Lawsuit Against Saints

    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.
    After Fatal Uber Incident, Nvidia Defers Autonomous Car Testing On Public Roads

    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.
    Jewish Holocaust survivor (85) found stabbed to death in Paris flat

    Jewish Holocaust survivor (85) found stabbed to death in Paris flat

    Authorities have refused to name the suspect but there are strong rumors that the perpetrators identity is being protected. Robert Ejnes, Executive Director of the umbrella group for French Jewish organizations, CRIF, told Hamodia that Mrs.
  • Family of victim involved in AV collision settles with Uber

    Family of victim involved in AV collision settles with Uber

    Uber has reportedly reached a settlement deal with the family of the victim that was killed by a self-driving auto in Arizona . Uber has been testing autonomous cars in San Francisco - with permits - for a year.
    Mayor, police chief announce internal investigation beginning in Alton Sterling shooting

    Mayor, police chief announce internal investigation beginning in Alton Sterling shooting

    The officers' body cameras and a store surveillance camera also recorded the encounter, but those videos have not been released. The death of Alton Sterling was a tragedy that evoked deep grief and anger across Baton Rouge and Louisiana.
    Rahul Gandhi met with Alexander Nix, ex-CEO of Cambridge Analytica

    Rahul Gandhi met with Alexander Nix, ex-CEO of Cambridge Analytica

    He said the Tel Aviv-based company was hired to "hack the now-president [Muhammadu] Buhari to get access to his medical records and private emails".
  • Grab acquires Uber's share of business in Southeast Asia

    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.
    Snow headed for San Juan Mountains Monday into Tuesday

    Snow headed for San Juan Mountains Monday into Tuesday

    If you have Easter travel plans this weekend, Friday and Saturday will be days to keep an eye on as we move throughout the week. The timing for this is still uncertain, but the best rain chances look to be more Monday morning than Easter Sunday for now.
    New York Yankees Debut New Show Called Roll Call Idol

    New York Yankees Debut New Show Called Roll Call Idol

    Bird hit.190 last season but had eight homers and 25 RBIs in 29 games after he returned from the disabled list in late August. Austin at first, Wade at second. "We're not talking about a 35-year-old at the end of his career", Teixeira said.


Popular

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.

Israeli Prime Minister Benjamin Netanyahu Taken To Hospital With High Fever
In a tweet , Netanyahu said that he was released and would be taking some time to rest. Mr Netanyahu dismissed the remarks as "full of holes like Swiss cheese".

Google Acquires Tenor GIF Platform, Will Still Operate as Separate Brand
Tenor mobile messaging services clubbed with the first GIF keyboard debuted on Apple's iOS operating system . To fix this issue, the company has begun experimenting with a "mobile-first" approach to indexing web pages.

Here are your Tuesday $458 million Mega Millions winning numbers
Two of those winning tickets were sold in Virginia Beach and one of those tickets was sold in Vienna. The victor has the option to get paid in installments or take the lump sum $274.5 million.

Watson crushes Kisner to claim Match Play crown
Watson played 109 holes over seven matches, going to the 18th hole just once when he halved his match with Julian Suri on Friday. We Know What We've Seen Here: DJ's record* drive. "Keeping that trophy means so much to all of us and I want to play my part".

Rams making No. 23 overall pick available in potential Odell Beckham trade
We want guys who are passionate about playing the game. "And we want guys that understand what it is to be a good teammate". Giants receiver Odell Beckham is making noises about a contract holdout, but the team doesn't think that's going to happen.

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 .

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.

Bird Out 6-8 Weeks
Bird hit.190 last season but had eight homers and 25 RBIs in 29 games after he returned from the disabled list in late August. These two Freedom Tower giants led the major leagues in home runs last season with 59 and 52 dingers, respectively.