Government Receives 150 Queries For Air India Sale!

Air India can breathe a sigh of relief. The government has received around 150 queries about Air India sale from companies, which include foreign and Indian carriers, as well as non-aviation entities.

The queries that the government has received from these companies are mostly about the value of debt, employees future and the management of the national carrier. Business Consultants, Ernst And Young(EY) are acting as transaction advisors for the government and will respond to these queries. They will also seek clarification from the government in case there are any changes in the terms of sale.

This comes as a great news for the airline and government, as major players such as Indigo, Jet Airways and Tata Group ruled themselves out for acquiring stake in the airline. However, there is a chance that IndiGo might rethink their decision in case the government changes its policies regarding the airline sale.

Last week the government announced that firms not related to the aviation industry can also bid for Air India as long as they have the financial capability to take over and run the airline. Foreign airlines such as Lufthansa, Air France, KLM and Private equity firms BlackRock and Temasek are amongst the entities which have expressed interest and sent queries about the airline.

According to the terms of the deal, the government has to sell 76 percent stake in Air India along with its low-cost subsidiary Air India Express. 50 percent stake of AISATS is also up for sale.AISATS is a joint venture between Air India and SATS Limited, who is a leading airport service and food solutions provider in Asia.

The last date of submitting queries by interested parties was April 16^th 2018. EY will respond to the queries by April 30^th 2018. The Last date for submitting the formal Expression of Interest(EoI) by prospective buyers is May 14^th 2018 and qualified bidders will be informed by the government by May 28th 2018.