NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


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

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Government calls for bids for 75% stake-sale in Air India
    Business

    Government calls for bids for 75% stake-sale in Air India

    Government calls for bids for 75% stake-sale in Air India
    Written by Gogona Saikia
    Mar 28, 2018, 06:21 pm 2 min read
    Government calls for bids for 75% stake-sale in Air India

    The government has called for bids for sale of 76% stake in Air India (AI), which has debts of Rs. 52,000cr. Bids have also been called for sale of its 50% stake in AISATS, a ground-handling subsidiary between AI and Singapore Airport Terminal Services. Apart from that, AI owns 100% stake in Air India Express. The government hopes to complete the sale by 2018-end.

    Who can bid for stake in AI?

    To bid for the national carrier, companies will have to have a net worth of Rs. 5,000cr, the government said. Indian carriers with zero or negative net worth can also participate, provided they form a consortium with other partners and the total worth is over the mandated limit. Airlines with negative net worth can also partner with a private equity firm to place bids.

    What about foreign investment?

    In January, the government had allowed foreign investment of up to 49% in AI. But they clarified that "substantial ownership" and "effective control" of the national carrier will be with Indian nationals. Till then, foreign airlines could own 49% in other Indian airlines except AI.

    Who could be the next owner of AI?

    Among Indian carriers, IndiGo had the highest net worth of Rs. 3,800cr at FY17 end. IndiGo and an unnamed international airline have officially expressed interest till now. Other likely bidders include Jet Airways, SpiceJet and Vistara, but all of them have negative net worth. They could form partnerships to bid for AI. Likely combinations include Jet with Air France-KLM and Vistara with Singapore Airlines.

    Non-core assets not to be part of the sale

    Properties that won't be part of the sale include all non-core assets of AI, including its building in Mumbai and other offices. They will become part of the special purpose vehicle (SPV), which will also include working capital loans of Rs. 33,000cr (from the total Rs. 52,000cr debt). "We hope to finish the divestment by the year-end," Aviation Minister Ashok Gajapathi Raju had said.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Jet Airways
    IndiGo
    Air India
    Disinvestment

    Latest

    IPL 2023, CSK: Squad analysis, schedule, Probable XI, and verdict  Chennai Super Kings (CSK)
    IPL 2023, LSG: Squad analysis, schedule, Probable XI, and verdict Lucknow Super Giants
    Wesley Madhevere records the 50th hat-trick in ODI cricket: Stats Zimbabwe Cricket Team
    How to use WhatsApp's new desktop app on Windows WhatsApp

    Jet Airways

    Senior management and pilots quit Jet Airways amid uncertain future National Company Law Tribunal
    Airline relaunching complicated but close, prospects promising: Jet Airways CEO Directorate General of Civil Aviation
    Over 50% IndiGo flights delayed as crew attend job interviews IndiGo
    Rakesh Jhunjhunwala-backed Akasa Air reveals first pictures Civil Aviation Authority

    IndiGo

    2 'drunk' IndiGo flyers arrested for abusing crew, co-passengers Dubai
    Medical emergency: Delhi-Doha IndiGo flight diverted to Karachi; passenger dies Delhi
    Passenger smokes, tries to open door on Air India flight Air India
    Know about Air India's massive new 470 aircraft deal Air India

    Air India

    'Worst flight experience': UN diplomat flags Air India's poor services United Nations (UN)
    Kerala: Air India cabin crew arrested for smuggling gold Kerala
    Drunk student urinates on New York-Delhi American Airlines flight: Report American Airlines
    Those wearing 'hawai chappals' should travel in 'hawai jahaz': Modi Narendra Modi

    Disinvestment

    Air India employees asked to vacate colonies by July 26 Air India
    Jet Airways 'can't run after 60 days,' stake-sale attempts on India
    Mumbai's iconic Air India Building getting sold? Mumbai
    After Air India fiasco, Modi-govt now plans Coal India sale India

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023