Govt issues bid documents for sale of 100% stake in Air India
27 Jan 2020
1
The government has issued bid documents for 100 per cent stake in national carrier Air India and its low-cost subsidiary Air India Express as also 50 per cent shareholding in a joint venture, AISATS.
The sale also includes transfer of management control of the airline which operates both domestic and international routes. The deadline for submitting the Expression of Interest (EoI) is 17 March 2020.
The government also issued a preliminary information memorandum for 100 per cent stake sale in national carrier Air India.
AISATS is an equal joint venture between Air India and Singapore Airlines. It offers ground handling services.
Air India also operates Air India Engineering Services, Air India Air Transport Services, Airline Allied Services and Hotel Corporation of India. These are being transferred to a separate company — Air India Assets Holding Ltd (AIAHL) — and would not be a part of the proposed transaction, the document said.
According to the document, a debt of Rs23,286.5 crore would remain with Air India and Air India Express at the time of closing of the disinvestment. The remaining debt would be allocated to AIAHL. EY is the transaction adviser for Air India disinvestment process.
The document said any bidder would have to agree to assume this part of the debt, along with other liabilities
Also, the government said, substantial ownership and effective control of Air India would have to remain vested with an Indian entity following the sale, limiting the scope of any foreign bidders interested in the asset
Air India has some of India's most lucrative international and domestic landing and parking slots in major airports.
