Air India finally has a chance to lose the baggage

30 March, 2018, 00:23 | Author: Inez Murphy
  • Government wants to sell 76% stake in loss-making Air India transfer management control

National carrier Air India would now become a "majestic Maharaja" from the "beggar" it had become during the UPA regime, Union minister Jayant Sinha said here today.

The civil aviation ministry has sought Expression of Interest (EoI) for the stake sale in Air India and two of its subsidiaries.

Air India serves 54 domestic and 39 global destinations and has been loss-making for many years.

The Central government on Wednesday revealed that it would be selling 76 per cent stake in debt-ridden national carrier Air India through an auction process. "The balance debt shall be allocated to Air India Asset Holding which is 100% owned by the Government of India subject to receipt of requisite approvals from lenders and regulators, as applicable".

In Air India, the case for outright privatisation flows precisely from its inability to withstand sectoral competition.

Bids by management and employees of companies participating directly or by forming a consortium would be considered subject to guidelines issued by the Department of Investment and Public Asset Management (DIPAM).

Indigo operates primarily on domestic routes has about a 40 percent market share compared with a domestic market share by Air India and subsidiary Air India Express of 12.3 percent.

According to reports, the Indian private carriers could join hands with foreign counterparts to bid for the debt-ridden Air India.

Companies including low-priced Indian carrier IndiGo, owned by InterGlobe Aviation, Tata Group and Turkey's Celebi Aviation Holdings, have expressed an interest in buying some of Air India's operations. The latter is an equal joint venture between the national carrier and Singapore-based SATS Ltd.

The 24% stake that the government retains is their attempt to be prepared to cash in on any future improvement in the fortunes 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.

Given the salt-to-software conglomerate's desperation to be India's No. 1 steelmaker-it seems to have overpaid for bankrupt mills- it's unclear Tata would want to take on another big deal so soon.

Recommended:



Popular

Fired VA Secretary Shulkin Slams Privatization Efforts
In 2015, Shulkin was lured from the private sector and appointed by President Barack Obama as the VA's undersecretary for health. Shulkin told a staffer with a six-figure salary to act as a personal travel concierge for his wife on the taxpayer's dime.

VW dips toe in pickup waters with unibody Tanoak
The Cross Sport will be the model which will bridge the gap between the standard three-row seating Atlas and the Tiguan. It also gets is own grille and lighting designs, and a front bumper that boastfully displays the Atlas name.

Official reveals likely culprit behind deaths of Iowa family in Mexico
Gas inhalation has been blamed for the deaths of an Iowa family of four who visited Mexico last week, according to reports. The family had planned to meet up with some friends at a water park, Amy Sharp's cousin, Jana Weland, told ABC News .

Body found in shallow grave identified as missing model
Her family hired a private investigator to help find her and offered a $25,000 reward for information leading to her whereabouts. Shabani, who went missing in February, was identified by her tattoos, according to the Nevada County Sheriff's Office.

China's Crude Futures Launch With 10 Billion Yuan Traded In First Hour
Despite this, there were concerns over regulatory interference, as seen in other Chinese commodities like iron ore and coal. Brent and WTI, in contrast, were down by that time, weighed down by concerns over a looming US trade dispute with China .

Bubbly 'American Idol' Contestant Gushes, Giggles And Nails It
When it came to what song she would be singing, Lucia said her pick was a cover of Perry's breakthrough 2008 hit . Runnels works as a hostess at the Slidell restaurant Palmettos on the Bayou.

Reaction: Duke assistant coach Jeff Capel heading to Pittsburgh
Maria Taylor, ESPN college basketball reporter, tweeted: "It's a done deal". The Panthers reached the NCAAs 11 times in 13 seasons under Dixon.

85-year-old Holocaust survivor's murder heightens fears of anti-Semitism in France
Last Friday, Holocaust survivor Mireille Knoll, 85, was found dead in her apartment in Paris's central 11th district. We waited for police to say it, and now we know the truth.Until now, I haven't felt anti-Semitism in France.

The first Google Chrome OS tablet takes aim at Apple's next iPads
The Acer Chrome OS tablet is supposed to ship next month in the U.S. , and in May in other regions around the world. The tablet comes backed up by a 34Wh battery which would last for an estimated 9 hours on a single charge.

Yankees' Bird to see foot specialist
This isn't the start the Yankees wanted to get off to, but the reality is their lineup is still highly potent without him. Bird is expected to rehab for six-to-eight weeks before returning to game action.