The government has issued an introductory memorandum on disinvestment plan of Air India which proposes to sell 76 percent stake of the national carrier. The process will be executed through an open bidding course.
Moreover, the Ministry of the Civil Aviation has sought an Expression of Interest (EOI) for the sale of the stake in the loss-making airline and the two of its subsidiaries. As a matter of fact, Ernst and Young LLP India has been chosen to be the sole transaction advisor for the tactical disinvestment.
The government also hopes to zero onto the new owner of Air India by the end of June and draw the “legal closing” of the transaction to a close by the month of December when the Maharaja’s assets will be transferred to the one who wins the bid.
The information memorandum stated that the transaction will involve Air India, its low-frill arm Air India Express and Air India SATS Airport Services Pvt. Ltd.
Further, apart from the employees that are 28,000 in number, the Air India has piled debt-cum-losses of around Rs. 50,000 crores, and the figure can go up to Rs. 70,000 crore once the dues to the oil companies and the airports is added. The sale should be completed by the end of the year.
As of now, the Maharaja is persisting on an equity infusion of Rs. 30, 231 crore that was approved in the year 2012 and which was given over a decade ago.
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