newstodate.aero
June 11, 2019: The Indian government is preparing for another attempt to sell its debts-burdened national carrier Air India.
A similar effort in 2018 proved fruitless as the government performed a tender for sale of 76 percent of the stake in Air India with strings attached in the form of a lock on the future owner's sales of shares for three years.
This time, the government is taking a more liberal approach, allowing for sale of 95 percent of the shares with full rights for the future owner to sell off shares immediately after the take over.
The coming tender will also allow a successful bidder to sale/lease-back of the carrier's aircraft, 62 percent of which are actually owned by the airline and thus constituting a cash reservoir.
The government will also move most of the airline's debts pile to an external fund, relieving a coming new owner of the obligations.
The coming new tender process to be opened within a month is slated to be completed before the end of this year.
A similar effort in 2018 proved fruitless as the government performed a tender for sale of 76 percent of the stake in Air India with strings attached in the form of a lock on the future owner's sales of shares for three years.
This time, the government is taking a more liberal approach, allowing for sale of 95 percent of the shares with full rights for the future owner to sell off shares immediately after the take over.
The coming tender will also allow a successful bidder to sale/lease-back of the carrier's aircraft, 62 percent of which are actually owned by the airline and thus constituting a cash reservoir.
The government will also move most of the airline's debts pile to an external fund, relieving a coming new owner of the obligations.
The coming new tender process to be opened within a month is slated to be completed before the end of this year.