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Govt to sell 100% stake in Air India; issues bid document

Govt to sell 100% stake in Air India; issues bid document

The document set March 17 as the deadline for submissions of initial expressions of interest and said any bidder would have to agree to assume roughly $3.26 billion in debt

India said that substantial ownership and effective control of Air India would have to remain vested with an Indian entity following the sale India said that substantial ownership and effective control of Air India would have to remain vested with an Indian entity following the sale

Government said on Monday it plans to sell its entire stake in Air India, in a revised push to sell its national carrier after an initial attempt to sell a majority stake in the airline failed to draw a single bid in 2018.

A document inviting expressions of interest in Air India, released on Monday, said India would sell a 100% stake in the carrier, which operates both domestic and international routes.

The document set March 17 as the deadline for submissions of initial expressions of interest and said any bidder would have to agree to assume roughly $3.26 billion in debt, along with other liabilities.

India said that substantial ownership and effective control of Air India would have to remain vested with an Indian entity following the sale, limiting the scope of any foreign bidders interested in the asset.

In 2018, India had tried to sell a 76% stake in Air India and offload about $5.1 billion of its debt, terms that potential buyers at the time viewed as too onerous.

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.

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Published on: Jan 27, 2020, 9:03 AM IST
Posted by: mansi jaiswal, Jan 27, 2020, 9:03 AM IST