Air India's domestic advisor to the divestment programme, IFCI has received 16 bids for the global advisor's post when the last date expired on Tuesday. Though some of the global institutions had put in their bids even before the elections, the date was extended after the new Government came to power, said a senior ministry official.

Shortlisted parties will make presentations to the A-I board soon leading to the appointment of the advisor before December 15, the official added.Air India is believed to be keen on selling its stake in the hotel arm at the earliest to raise money for the short term needs. If everything goes according to schedule, HCI divestment will be over by March next year,the official added.

A-I decided to enter the hotel industry in 1971 in keeping with the world trend of airlines starting hotels and has established two hotels in Mumbai, and one each in Delhi, Srinagar and Rajgir. It has of late been showing a dip in profitability with its net profit declining in 1997-98 to Rs 17.82 crore from Rs 30.74 crore in 1996-97.

Even as HCI divestment process is gaining momentum, A-I has been gearing up for the sale of 40 per cent government's stake to an overseas partner. The airline has recently done a valuation of assets of which put the total value of the airline's assets between Rs 10,000 and Rs 12,000 crore. There is now a thinking in the ministry to reduce the level of divestment in A-I from the current level of 40 per cent. However, a decision to this effect will be taken only after a series of deliberations with the concerned parties, A-I sources said.

A-I's divestment process has set off speculations regarding the overseas partner. Though various names have been doing the rounds including the fellow code sharing partner Air France, inordinate delay due to elections has put a lid to the talks prior to the strategic tie-up.

With the process getting activated again, A-I may gradually begin dialogues with the prospective partners. There is also a likelihood of the airline joining one of the global aviation alliances as a prelude to a strategic arrangement.