Air India is up for sale again. The government is inviting bids for a 100% stake.

Gravitas: Indian Government puts up Air India for sale, again

The airline is sitting on a debt pile of around Rs 58,000 crore, besides huge accumulated losses running into thousands of crores. Currently, the Government of India holds a 100 per cent stake in the airline, and its subsidiary Air India Express.

Government puts 100% of Air India on sale

The Indian government said it did not receive any expressions of interest in its planned Air India stake sale. The deadline for submission of expression of interest ended today.

"As informed by the Transaction Adviser, no response has been received for the Expression of Interest floated for the strategic disinvestment of Air India," the Civil Aviation Ministry said in a tweet.

"Further course of action will be decided appropriately," it added.

Ernst & Young is the transaction advisor for the process.

Prime Minister Narendra Modi's government, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76 per cent stake and offload about $5.1 billion (3.8 billion pounds) of its debt.

Air India, known for its Maharaja mascot, has some of India's most lucrative international and domestic landing and parking slots that are key for airlines.

While a buyer would have got management control and gained access to more than 2,500 international slots and over 3,700 domestic slots, it would also have been required to take on Air India's 27,000 employees, 40 per cent of whom are permanent staff.

The terms had also stipulated that the government would have continued to hold a 24 per cent stake, with the need for the bidder to abide by conditions, not yet detailed, designed to safeguard employee interests.

The government had also restricted merging the airline with the buyer's existing businesses, but later relaxed the rule to allow some integration for business efficiency.

Jet Airways and rival IndiGo, owned by InterGlobe Aviation, have already opted out of the race.

(With inputs from agencies)

The government is planning to divest a 76 per cent stake in the loss-making state-owned carrier.

The Indian government said it did not receive any expressions of interest in its planned Air India stake sale. The deadline for submission of expression of interest ended today. "As informed by the Transaction Adviser, no response has been received for the Expression of Interest floated for the strategic disinvestment of Air India," the Civil Aviation Ministry said in a tweet. "Further course of action will be decided appropriately," it added. Ernst & Young is the transaction advisor for the process. Prime Minister Narendra Modi's government, keen to sell the loss-making, debt-ridden airline, finalised plans in late March to divest a 76 per cent stake and offload about $5.1 billion (3.8 billion pounds) of its debt. Air India, known for its Maharaja mascot, has some of India's most lucrative international and domestic landing and parking slots that are key for airlines. While a buyer would have got management control and gained access to more than 2,500 international slots and over 3,700 domestic slots, it would also have been required to take on Air India's 27,000 employees, 40 per cent of whom are permanent staff. The terms had also stipulated that the government would have continued to hold a 24 per cent stake, with the need for the bidder to abide by conditions, not yet detailed, designed to safeguard employee interests. The government had also restricted merging the airline with the buyer's existing businesses, but later relaxed the rule to allow some integration for business efficiency. Jet Airways and rival IndiGo, owned by InterGlobe Aviation, have already opted out of the race. (With inputs from agencies)

No bids received for Air India stake sale, says government

Alleging that the probable bidders are using "arm twisting tactics" to force the government sell the national carrier for cheap, a forum of 10 Air India unions has said that it will take up the issue with the PMO and the civil aviation ministry, among others.

In a statement issued on Wednesday, the forum also reiterated its opposition to the privatisation of the loss-making airline, saying that "it (Air India) is our national pride and it served the nation many a times in need."

The statement comes following one after another potential bidder opting out of the Air India sale process after the government coming out with the terms of offer in the information memorandum.

 
"The so-claimed probable buyers are using arm twisting tactics so as to put pressure on the government to succumb to change the terms and conditions best suited to them and the Air India is sold for a song," the Joint Forum of Air India Unions/Guilds/Association said in the statement.

The forum comprises Air Corporations Employees Union, All India Service Engineers Associations, Air India Employees Union, Aviation Industry Employee Guild, Air India Aircraft Engineers Association, All India Aircraft Engineers Association, Air India Engineers Association, United Air India Officers Association, All India Cabin Crew Association and All India Airline Retired Personnel Association.

On March 28, the civil aviation ministry came out with the preliminary information memorandum on Air India's strategic disinvestment, as per which, the government plans to offload 76 per cent equity share capital of the national carrier as well as transfer the management control.

The proposed transaction would involve Air India, its low-cost arm Air India Express and Air India SATS Airport Services, which is an equal joint venture between the national airline and Singapore-based SATS.

"The joint forum as stated many times has strongly opposed the privatisation of Air India and its subsidiaries as the Air India is our national pride and served the nation many a times at needs," the forum said.

"This statement is issued by the joint forum to safeguard the national interest. A detailed letter in this regard will be sent to the prime minister office, ministry of civil aviation and Air India management," it added.

Budget carrier IndiGo, which is struggling with Pratt & Whitney engine issues in its A320 Neo planes, had initially evinced interest in acquiring Air India's international operations, but later backed out, saying such an option was not available under the disinvestment plan.

Days later, Naresh Goyal-owned Jet Airways also said it had decided not to participate in the Air India sale process considering the terms of offer in the information memorandum and based on its review.

The forum had held a protest meeting also at the national carrier's Kalina officer here yesterday against the government's privatisation move.

The government is giving the Air India to private players at a time when the carrier is improving its operational and financial performance, the forum had alleged, stating that the move amounts to "socialising losses and privatising profits.

The statement comes following one after another potential bidder opting out of the Air India sale.

Alleging that the probable bidders are using "arm twisting tactics" to force the government sell the national carrier for cheap, a forum of 10 Air India unions has said that it will take up the issue with the PMO and the civil aviation ministry, among others. In a statement issued on Wednesday, the forum also reiterated its opposition to the privatisation of the loss-making airline, saying that "it (Air India) is our national pride and it served the nation many a times in need." The statement comes following one after another potential bidder opting out of the Air India sale process after the government coming out with the terms of offer in the information memorandum. "The so-claimed probable buyers are using arm twisting tactics so as to put pressure on the government to succumb to change the terms and conditions best suited to them and the Air India is sold for a song," the Joint Forum of Air India Unions/Guilds/Association said in the statement. The forum comprises Air Corporations Employees Union, All India Service Engineers Associations, Air India Employees Union, Aviation Industry Employee Guild, Air India Aircraft Engineers Association, All India Aircraft Engineers Association, Air India Engineers Association, United Air India Officers Association, All India Cabin Crew Association and All India Airline Retired Personnel Association. On March 28, the civil aviation ministry came out with the preliminary information memorandum on Air India's strategic disinvestment, as per which, the government plans to offload 76 per cent equity share capital of the national carrier as well as transfer the management control. The proposed transaction would involve Air India, its low-cost arm Air India Express and Air India SATS Airport Services, which is an equal joint venture between the national airline and Singapore-based SATS. "The joint forum as stated many times has strongly opposed the privatisation of Air India and its subsidiaries as the Air India is our national pride and served the nation many a times at needs," the forum said. "This statement is issued by the joint forum to safeguard the national interest. A detailed letter in this regard will be sent to the prime minister office, ministry of civil aviation and Air India management," it added. Budget carrier IndiGo, which is struggling with Pratt & Whitney engine issues in its A320 Neo planes, had initially evinced interest in acquiring Air India's international operations, but later backed out, saying such an option was not available under the disinvestment plan. Days later, Naresh Goyal-owned Jet Airways also said it had decided not to participate in the Air India sale process considering the terms of offer in the information memorandum and based on its review. The forum had held a protest meeting also at the national carrier's Kalina officer here yesterday against the government's privatisation move. The government is giving the Air India to private players at a time when the carrier is improving its operational and financial performance, the forum had alleged, stating that the move amounts to "socialising losses and privatising profits.

Potential bidders 'arm twisting' govt on Air India sale, say unions

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