The government issued a preliminary information memorandum on Monday, 27 January, for 100 percent stake sale in the national carrier, Air India, PTI reports.
According to the bid document, as part of the strategic disinvestment Air India would also sell a 100 percent stake in low-cost airline Air India Express and 50 percent shareholding in joint venture AISATS. The management control of the airline would also be transferred to the successful bidder.
The deadline for submitting the Expression of Interest (EoI) is 17 March.
Civil Aviation Minister Hardeep Singh Puri has said that Air India, along with Air India Express, is a “great asset” and the successful bidder will continue to use the Air India brand.
AISATS is an equal joint venture between Air India and Singapore Airlines which offers ground handling services, according to the news agency.
Air India also has interests in Air India Engineering Services, Air India Air Transport Services, Airline Allied Services and Hotel Corporation of India.
These entities are in the process of being transferred to a separate company – Air India Assets Holding Ltd (AIAHL) – and would not be a part of the proposed transaction, the document reportedly said.
A debt of Rs 23,286.5 crore would remain with Air India and Air India Express at the time of closing of the disinvestment. The remaining debt would be allocated to AIAHL.
‘When Govts Don’t Have Money, This Is What They Do’: Kapil Sibal
Calling the national carrier a “valuable asset,” Congress leader Kapil Sibal lamented the development and criticised the government for a slowing economy.
“When governments don’t have money this is what they do. Government of India has no money, growth is less than 5 percent and millions of rupees outstanding under MNREGA. This is what they will do, sell all the valuable assets we have.”Kapil Sibal to ANI
Ernst & Young is the transaction adviser for the Air India disinvestment process.
Various Air India employee unions will meet in New Delhi on Monday to discuss proposed privatisation of the debt-laden airline, sources told PTI.
(With inputs from ANI and PTI)
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