Brand ‘Air India’ to be retained as government proposes to sell 76% stake; control only to Indian national

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Updated: March 28, 2018 6:14:37 PM

The government on Tuesday proposed selling 76% stakes in Air India to private parties. It has also issued eligibility criteria for bidders.

Air India, Israel, air india New Delhi Tel Aviv New Delhi route, Saudi Arabia, Benjamin Netanyahu, Civil Aviation,The government on Tuesday proposed selling 76% stakes in Air India to private parties. (PTI)

The government on Tuesday proposed selling 76% stakes in Air India to private parties, with the condition that the brand ‘Air India’ will be retained and the control of the national-carrier will stay with Indian nationals, according to the official document. Last year the Narendra Modi gave in-principle approval for strategic disinvestment of the debt-laden national carrier to private players. The government has also issued preliminary information memorandum on eligibility criteria for bidders.

The government has taken a step forward in Air India disinvestment and has proposed the following:

  • The brand ‘Air India’ to be retained for a few years
  • New bidders need to ensure that only Indian nationals will have the control of Air India
  • Only companies with the minimum net worth of Rs 5,000 crore can bid for Air India
  • The lead member shall hold at least 51% of paid-up capital
  • Management or employees can participate directly in the bidding process or by way of forming a consortium, as per the memorandum
  • The Air India disinvestment transaction will involve Air India, its low-cost arm Air India Express and Air India SATS Airport Services Pvt Ltd. The latter is an equal joint venture between the national carrier and Singapore-based SATS Ltd

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