Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Zomato
WhatsApp
Bitcoin
Rakesh Jhunjhunwala
Stock Market
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Here's all you need to know about Air India sale
Business

Here's all you need to know about Air India sale

Here's all you need to know about Air India sale
Written by Krunali Shah
Mar 30, 2018, 12:35 am 2 min read
Here's all you need to know about Air India sale

Initiating the disinvestment process for India's national carrier Air India (AI) on Wednesday, the government issued a preliminary information memorandum (PIM) offering to sell 76% of its stake in the Maharaja. It will also sell the entire low-cost international carrier Air India Express Ltd. and 50% stake in the ground handling unit. Here's more about it.

Issue
What is status of India's ailing flagship carrier?

Sixty-five years back, AI was nationalized. However, it has been unprofitable since its 2007 merger with state-owned domestic operator Indian Airlines Ltd. AI has been surviving on tax-payer funded bailouts. In 2016-17, it reported losses of Rs. 5,765cr. In addition to intense competition from private players like IndiGo and Jet Airways, delays in decision-making and red tape are the reasons behind AI's increased debt.

Agenda
Now, what is the government's plan?

By retaining just 24% stake, the government will give up its management control to the most successful bidder. The remaining 24% will be offloaded later. The buyer will also inherit $5bn debt. The balance after the payout will go to the government. They will also get prime-time slots at airports like New York, Heathrow, etc. and rights to start operations in most countries.

Pre-requisites
What conditions has the government laid down for bidders?

To be considered, a bidder's net worth should be Rs. 5,000cr and they should have reported a profit after tax in three of five previous years. Further, the bidder must commit to a lock-in period of three years, that is, they can't cede management control during this period. They will also have to continue using the Air India brand for specified years.

Possible bidders
Who are the prospective buyers?

Only IndiGo, India's biggest airline, has expressed desire to buy the beleaguered airline. India's No. 1 steelmaker Tata Group that owned AI before it was nationalized may also bid with its long-time partner Singapore Airlines. Further, Qatar Airways Ltd., Air France-KLM, Delta Air Lines Inc. and Jet Airways India Ltd. could also bid.

Significance
What does the sale imply?

By taking this bold decision, PM Modi has broken free of government's reluctance to cede control of companies that are part of India's patronage. This is despite the Opposition being up in arms. However, in spite of political will, the government's criteria make the sale a difficult proposition. Incidentally, this sale will help the government achieve its ambitious Rs. 80,000cr disinvestment target for FY2019.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Krunali Shah
Krunali Shah
Mail
Latest
India
Narendra Modi
Jet Airways
IndiGo
Air India
Latest
Karnataka: Man stabbed to death by masked attackers in Mangaluru
Karnataka: Man stabbed to death by masked attackers in Mangaluru India
Cryptocurrency prices today: Check rates of Bitcoin, Ethereum, BNB, XRP
Cryptocurrency prices today: Check rates of Bitcoin, Ethereum, BNB, XRP Business
Ford recalls BS6 diesel models of Figo, Aspire, Freestyle, EcoSport
Ford recalls BS6 diesel models of Figo, Aspire, Freestyle, EcoSport Auto
Revealing diet and fitness secrets of Sanjay Dutt
Revealing diet and fitness secrets of Sanjay Dutt Lifestyle
Happy birthday, Sanjay Dutt! Revisiting actor's most memorable antagonist roles
Happy birthday, Sanjay Dutt! Revisiting actor's most memorable antagonist roles Entertainment
India
Here are the interesting facts about the Commonwealth Games
Here are the interesting facts about the Commonwealth Games Sports
Droupadi Murmu takes oath as 15th president of India
Droupadi Murmu takes oath as 15th president of India India
Droupadi Murmu may wear traditional Santhali saree for swearing-in ceremony
Droupadi Murmu may wear traditional Santhali saree for swearing-in ceremony India
#NewsBytesExplainer: Why did India open opium trade to private firms
#NewsBytesExplainer: Why did India open opium trade to private firms Business
Hackers to smoke out Aadhaar bugs, detect security loopholes
Hackers to smoke out Aadhaar bugs, detect security loopholes India
More News
Narendra Modi
SC upholds ED's powers to arrest under money laundering act
SC upholds ED's powers to arrest under money laundering act India
Centre changes Flag Code: Now, every home can hoist Tricolor
Centre changes Flag Code: Now, every home can hoist Tricolor India
Kargil Vijay Diwas: India pays tribute to 1999 war heroes
Kargil Vijay Diwas: India pays tribute to 1999 war heroes India
UK announces largest drone superhighway: How's India boosting similar technology?
UK announces largest drone superhighway: How's India boosting similar technology? World
UP: Bundelkhand Expressway cracks open days after PM Modi's inauguration
UP: Bundelkhand Expressway cracks open days after PM Modi's inauguration India
More News
Jet Airways
Over 50% IndiGo flights delayed as crew attend job interviews
Over 50% IndiGo flights delayed as crew attend job interviews Business
Rakesh Jhunjhunwala-backed Akasa Air reveals first pictures
Rakesh Jhunjhunwala-backed Akasa Air reveals first pictures Business
Sanjiv Kapoor named new CEO of Jet Airways
Sanjiv Kapoor named new CEO of Jet Airways Business
Jet Airways to resume domestic services in Q1 of 2022
Jet Airways to resume domestic services in Q1 of 2022 Business
NCLT approves Jalan-Kalrock consortium's plan for Jet Airways
NCLT approves Jalan-Kalrock consortium's plan for Jet Airways Business
More News
IndiGo
Air India Dubai-Kochi flight diverted due to 'loss of pressure'
Air India Dubai-Kochi flight diverted due to 'loss of pressure' India
Yet another glitch: IndiGo flight makes emergency landing in Karachi
Yet another glitch: IndiGo flight makes emergency landing in Karachi India
IndiGo Delhi-Vadodara flight diverted to Jaipur, probe ordered
IndiGo Delhi-Vadodara flight diverted to Jaipur, probe ordered India
DGCA notice to SpiceJet after 8 incidents in 18 days
DGCA notice to SpiceJet after 8 incidents in 18 days India
SpiceJet Delhi-Dubai flight diverted to Karachi over glitch, probe launched
SpiceJet Delhi-Dubai flight diverted to Karachi over glitch, probe launched India
More News
Air India
Suspect of 1985 Air India bombing shot dead in Canada
Suspect of 1985 Air India bombing shot dead in Canada India
Air India planning to buy 300 aeroplanes in largest-ever order
Air India planning to buy 300 aeroplanes in largest-ever order Business
Air India employees asked to vacate colonies by July 26
Air India employees asked to vacate colonies by July 26 India
Air India flight returns to Mumbai after engine stops mid-air
Air India flight returns to Mumbai after engine stops mid-air India
Aviation veteran Campbell Wilson is new CEO of Air India
Aviation veteran Campbell Wilson is new CEO of Air India Business
More News
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022