Their argument was that if the two airlines are taken over by private companies, the government will have to forego certain benefits. For instance, the government will not be able to requisition aircraft during emergencies like war and cyclones. Other objections related to the foreign equity that has been allowed in the A-I and the IA.

The security issues related to privatisation in the aviation sector were taken up by the CCS. The committee, however, did not see much problem in privatising the two airlines, according to sources in the department of disinvestment (DoD).

They pointed out that the department has completed the process of short-listing of bidders, but they refused to divulge the names of the short-listed bidders. After due diligence of the A-I and the IA, the global advisers will prepare an information memorandum in consultation with the the managements of the two airlines. This will be given to the short-listed bidders who have signed a confidentiality agreement.

The draft share purchase agreement and the shareholder agreement will also be prepared by the advisers with the help of legal advisers. The prospective bidders will undertake due diligence of the PSUs and hold discussions with the advisers, the government and representatives of the two airlines.

The task of valuation of the aviation PSUs will be undertaken concurrently in accordance with standard national and international practices.