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NEW DELHI: Air India has found no takers and the BJP government’s second move since early 2000 to sell off the debt-ridden Maharaja has come a cropper. The aviation ministry Tweeted after the deadline for submission of expression of interest ended at 5 pm: “As informed by the Transaction Adviser, no response has been received for the EoI floated for the strategic disinvestment of Air India. Further course of action will be decided appropriately.”
The government had last year decided to sell AI, which has a debt of almost Rs 50,000 crore. Two months back, the Modi administration offered to sell 76% of Air India. Of AI’s total debt, bidders for the airline arm — AI, AI Express and AI-SATS (airport service company) —will have to take over debt of Rs 24,576 crore and current liabilities of Rs 8,816 crore or a total burden of Rs 33,392 crore.
IndiGo was the only one to formally express interest in AI’s international operations but backed out later when the terms said the bidder will need to take over the entire — including domestic — flights of AI and AI Express. Tata Group and Jet were seen as other potential bidders along with some international airlines but no one submitted EoIs. Vistara, Tata-Singapore Airlines JV, said it did not submit the EoI.
Airlines looking at AI divestment process say there are several things that the government will need to do to make the Maharaja a viable proposition. These include not being asked to take care of its huge work force and the massive debt.
“All issues related to taking AI sale forward will need to be decided by the GoM,” said a source.
The unions, who have been opposing the sale, are rejoicing. “No bids at the end of the day. Victory for Joint Forum in our endeavour of save AI,” a union leader said.
Senior aviation ministry officials say further call on AI divestment — including sweetening the terms of sale or extending date for EoI — will be taken by the group of ministers headed by the finance minister on the subject.
The government had last year decided to sell AI, which has a debt of almost Rs 50,000 crore. Two months back, the Modi administration offered to sell 76% of Air India. Of AI’s total debt, bidders for the airline arm — AI, AI Express and AI-SATS (airport service company) —will have to take over debt of Rs 24,576 crore and current liabilities of Rs 8,816 crore or a total burden of Rs 33,392 crore.
IndiGo was the only one to formally express interest in AI’s international operations but backed out later when the terms said the bidder will need to take over the entire — including domestic — flights of AI and AI Express. Tata Group and Jet were seen as other potential bidders along with some international airlines but no one submitted EoIs. Vistara, Tata-Singapore Airlines JV, said it did not submit the EoI.
Airlines looking at AI divestment process say there are several things that the government will need to do to make the Maharaja a viable proposition. These include not being asked to take care of its huge work force and the massive debt.
“All issues related to taking AI sale forward will need to be decided by the GoM,” said a source.
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