Union government announces plan to sell 100% stake in Air India

28 Jan 2020

Union government announces plan to sell 100% stake in Air India

Union government announces plan to sell 100% stake in Air IndiaThe Union government on 27 January, invited bids (offers) for 100% stake (full) sale of Air India (AI). Previously, we had read that Air India is facing closure due to lack of funds.

This is the second time the government has tried to sell Air India. The first attempt was in May 2018, when the government offered 76% stake but it did not get any bidders.

What will the buyer get?

The buyer will get management control of Air India.
 	There will also be the transfer of 100% stake in AI subsidiaries - AI Express Limited (AIXL) and 50% stake in AI-SATS, which is a joint venture with Singapore-based ground handling company SATS Limited.
 	Additionally, the government has offered to pay for Air India's liabilities (debt) worth nearly ₹40,000 crores.
 	Air India also has 4,400 domestic airport slots, 1,800 international slots at Indian airports, as well as 900 slots at airports overseas.
 	Air India's 9,617 permanent employees are available and so is the airline’s brand as well as the famous “Maharaja” and “Flying swan” logos.

Who can bid for the sale?

Any private or public limited company, a corporate body and a fund with a net value of ₹3,500 crores will be eligible to bid.
 	Interested parties can inform the authorities by 17 March 2020. Then, after 31 March, selected bidders will have two months to submit financial bids.

However, the control of Air India will remain with an Indian national. A foreign airline can buy only up to 49% stake in the airlines.

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The Union government on 27 January, invited bids (offers) for 100% stake (full) sale of Air India (AI). Previously, we had read that Air India […]

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