Air India disinvestment process likely to kickstart by month-end

Girja Shankar Kaura

Tribune News Service

New Delhi, March 22

Disinvestment of the debt-ridden national carrier Air India may get off the mark later this month with the government issuing Expression of Interest (EoI) cleared by the Union Cabinet.

Reports said the Specific Alternate Mechanism, a group of ministers, looking into the modalities of the divestment of the national flag carrier, had met on Wednesday and may have finalised the contours for the EoI, which may be announced anytime.

Finance Minister Arun Jaitley heads the panel that is assisted by consultants EY and SBI Capital Markets.

The group would also prepare a note for the issue of the EoI which would be moved for clearance from the Union Cabinet after which it will be issued for public interest. The EoI should be out by the end of this month, reports said.

As decided earlier, the disinvestment of Air India group, the largest strategic sale of an Indian public sector company, would happen in phases with the parent airline along with Air India Express and the other four arms all seeing different EoIs.

Air India Charters operates low-cost flights between Kerala and West Asia under the brand name Air India Express. It won’t be merged with its parent company, but the two may be sold as one unit to the buyer.

Besides the parent body and Air India Express, the National Aviation Company of India Limited, as it is registered, has Air India Air Transport Services, Air India Engineering Services, Airline Allied Services and Hotel Corporation of India as its subsidiaries. It has a 50:50 joint venture — Air India SATS Airport Services — with Singapore Airport Terminal Services to provide ground handling services to airlines at certain metro airports.

Contours for Expression of Interest soon

• According to reports, a group of ministers, looking into the modalities of the divestment of the national flag carrier, had met on Wednesday and may have finalised the contours for the EoI, which may be announced anytime
• The Expression of Interest is likely to be out by the end of this month
• The divestment would happen in phases with the parent airline along with Air India Express and the other four arms all seeing different EoIs
• The government is likely to retain 26% stake in Air India to have a Board seat