New Delhi, April 21: A heated debate is on in the Indian aviation industry on the quantum of equity of the Air India (AI) to be given to a foreign strategic partner with one group wanting the stakes to be limited to 25 per cent and the other seeking at least 40 per cent, saying anything less would not be attractive for any investor.While Ficci has recommended that the foreign partner "should not hold more than 25 per cent", another section of the aviation industry quoting an international survey said that major chunk of world airlines have given over 40 per cent stakes to their foreign airline shareholders.
However, Ficci, in its comments on the draft civil aviation policy, has recommended that besides 25 per cent stake to foreign partner, another 26 per cent should be offered to Indians and NRIs and the management control of the airline should remain in the hands of Indian partners.
However, sources in the aviation industry said that no world-class foreign airline, which is a stable corporate entity and is profitable, with 25 per cent stake would be interested "only in harvesting and feeding its own carrier" instead of investing in AI's fleet, infrastructure and facilities.
They said a strategic partner, with less than 40 per cent stake, would be vulnerable to hostile take-overs especially when AI is back on rails and starts earning profits.
The foreign partner would also like to have management control as it would like to be party in major decisions which would determine AI's future investment and direction of business, they said.
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