Air India Disinvestment

A lower bid amount may not halt the disinvestment process

The Tata group and SpiceJet promoter Ajay Singh are in the race to acquire the loss-making airline

The administrative ministry - ministry of civil aviation - prone to leaks is privy to very little

We have taken up some big-bang disinvestments, particularly Air India and LIC on priority, said Bajaj

FM said in her budget speech that the disinvestment of Air India and Pawan Hans would be completed in 2021-22

The govt expenditure this year (till October-end) was at roughly the same level as that seen in the same period last year

The government said it will intimate qualified interested bidders of Air India on January 5 next year, instead of the earlier decided date of December 29, 2020

These key decisions might come at a time when the divestment deadline of October 31 is fast approaching

The aviation industry is expected to make a loss of $67 billion in 2020 and several airlines are expected to file for bankruptcy in the coming months

Industry executives and investment bankers said there is less chance of the process being successful in the current situation as business houses, including airlines, are looking to conserve cash

It has proposed selling 100% stake in Air India along with budget airline Air India Express and the national carrier's 50% stake in AISATS, an equal joint venture with Singapore Airlines.

Apart from the Adani group, the Tata group, the Hinduja group, Indigo and a New York-based fund, Interups, are expected to submit EoIs

The deadline for submitting the EoI is March 17

A draft note has been circulated on the issue seeking comments from different ministries

The government has proposed selling 100 per cent stake in Air India along with budget airline Air India Express

In 2019, domestic air passenger traffic in India stood at 14.41 crore, an increase of nearly four per cent compared to the previous year, as per the latest official data.

The union also said that it is unfortunate that they (PSUs) are being sold in the name of resource mobilization to fund social spending

"We remain committed to support India's vision for the tourism and aviation sectors"

This is the second time in less than two years that the government has come out with proposal for selling stake in Air India

The government would soon be appointing a technical and a legal advisor for carrying out the due diligence.