Air India (AI, Delhi International) has elicited interested from several more private parties following an announcement on Wednesday, June 29, that Narendra Modi's cabinet has given its consent to the privatization of the debt-ridden carrier.
Quoting comments attributed to Civil Aviation Minister Ashok Gajapathi Raju, Indian television channel CNBC-TV18 reported on Thursday that the country's largest carrier by fleet-size and passenger through-put, LCC IndiGo Airlines (6E, Delhi International), has expressed an unsolicited interest in Air India.
IndiGo said in a disclosure to the Bombay Stock Exchange on Thursday, June 29, that President Aditya Ghosh has written a letter Civil Aviation Minister Ashok Gajapathi Raju informing him of IndiGo's interest in acquiring Air India's overseas operations.
"Alternatively, we are equally interested in acquiring all of the airline operations of Air India and Air India Express," he said.
Last week, Indian conglomerate Tata Group was reported to have made informal overtures to regain control of the airline it controlled until nationalization in 1953.
Of primary concern to any prospective investors will be Air India's debt which was last year stated to stand at INR513.6 billion rupees (USD7.65 billion).
Government spokesman Frank Noronha said a panel consisting of the Ministries of Finance and Civil Aviation among others will be convened to decide on the treatment of the airline's unsustainable debt, the hiving off of certain assets to a shell company (NewCo), the size of the stake to be divested, the discernment of a suitable bidder, and the unbundling and strategic disinvesment of its three profitable units - Air India Express, Alliance Air (India), and ground handling firm Air India Transport Services Ltd.
Among the privatization options being looked at include a full 100% divestiture, a 74% stake sale, and the retention of a 49% share.
