Won’t Sell Air India If Bidding Prices Are Low: Aviation Ministry
The Centre’s bid to divest 76% of the Air India, along with Air India Express, has not attracted a lot of buyers.
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The secretary of Ministry of Civil Aviation, Rajiv Nayan, on Tuesday, 22 May, said that the government wouldn't sell Air India if the bidding price is found to be inadequate.
The Centre's bid to divest 76% of the Air India, along with entire Air India Express, has not attracted a lot of buyers, compelling the government to extend the deadline to submit an expression of interest to 31 May, 2018.
The government, after extending the deadline, will now announce the list of qualified bidders on 15 June, 2018.
The company is currently under the burden of Rs 500 billion debt, and the airline had posted a loss of Rs 57.6 billion in March 2017, according to Nikkei Asian Review.
The bid document explains that anyone with a minimum net worth of Rs 5,000 crore and who posted profit after tax in three of the previous financial years can bid for the national career, according to PTI.
The entity acquiring the domestic carrier will have to retain the ‘Air India’ brand for AI’s business operations for a minimum specified number of years on terms to be detailed at request for proposal (RFP) stage.
The bids can be put in by a single player or as part of a consortium. The consortium can be along with a bank, venture capitalist, financial institution or fund.
The government would retain 24% stake in the national carrier, and the bidder who buys Air India would have to stay invested in the airline for at least three years.
As per the bid document, the transaction would involve Air India, its low cost arm Air India Express and Air India SATS Airport Services Pvt Ltd, which is a joint venture between the national carrier and Singapore-based SATS.
(With inputs from PTI)
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