New Delhi : In a struggle to get a buyer for the debt burdened Air India airlines, the Government of India has announced 100 percent stake sale. Earlier attempt in 2018 to sell Air India majority stake did not attract any bids. So now this new move by the Government will sweeten the deal for the potential buyers.
The national carrier of the India, Air India is struggling with a huge debt of more than Rs 58000 crores and every month the operational losses are increasing alarmingly. Air India is 100% owned by the Indian Government and it operates domestic and International flights like Boeing and Airbus.
The Air India bid document revealed that March 17, 2020 is the last date for the buyers. The bid document says that buyer has to take the $3.26 billion debt and other liabilities and the control of the Airlines should remain with the Indian company.
As part of the deal the Air India buyer will get 100% in the airlines and 50% in AISATS which provides cargo, gateway , food solutions provider and ground handling services. The new buyer will get about 900 overseas airport slots, 1800 international slots at the Indian airports and whopping 4400 domestic landing and parking slots.
In 2018 the Air India 76% stake sale offer by the Government did not attract the investors and now as the Govt proposes to exit completely and also announced some more benefits the private investors might bid to buy.