S’pore Airlines, BA among 4 foreign cos interested in AI
Saurabh.Sinha@timesgroup.com 12.04.2018
New Delhi: Four major international airlines — including British Airways and Singapore Airlines (SIA) — are among those that have shown interest in Air India’s disinvestment. A carrier from the Gulf and a European airline have also evinced initial interest, sources connected with the disinvestment process told TOI. One of the foreign airlines that is evaluating the disinvestment proposal already has a stake in an Indian carrier and marrying the Maharaja could mean divorcing its partner.
Sources said the foreign airlines are also in talks with leading Indian business houses to meet the criterion of “substantial ownership and control”. A foreign airlines can have a joint venture in India provided it has a local partner with at least 51% stake and effective control. Foreign carriers forming a consortium to make a bid for Air India will need to fulfil this rule. “The four airlines are in active consultation with us. Among the Indian players they are in touch with to form aconsortia is a medium-sized domestic airline. The head of an international airline is also eying the process with interest. A leading Indian industrial house is also in touch,” said a source, who did not wish to be identified.
The government has offered to sell 76% in the loss-making national carrier and will transfer a substantial chunk of its debt into a separate company.
When contacted, International Airlines Group (IAG) — parent company of British Airways — said: “IAG doesn’t comment on rumours or speculation.” SIA had also stated recently: “Our priority is the further expansion of Vistara (its JV with Tatas). However, we will keep our options open with respect to the proposed divestment of Air India.”
‘Airlines backing out want Air India for a song’
New Delhi: Airlines backing out of bidding for Air India are doing so to “degrade and devaluate” AI, the airline’s unions said in a joint statement on Wednesday. Till now, IndiGo and Jet Airways have said they will not bid for AI in the current terms of sale.
“The claimed probable buyers are using arm twisting tactics so as to put pressure on the government to change the terms and conditions (for) them (and ensure) AI is sold for a song,” said a “joint forum against privatisation” formed by 10 AI unions. TNN
Saurabh.Sinha@timesgroup.com 12.04.2018
New Delhi: Four major international airlines — including British Airways and Singapore Airlines (SIA) — are among those that have shown interest in Air India’s disinvestment. A carrier from the Gulf and a European airline have also evinced initial interest, sources connected with the disinvestment process told TOI. One of the foreign airlines that is evaluating the disinvestment proposal already has a stake in an Indian carrier and marrying the Maharaja could mean divorcing its partner.
Sources said the foreign airlines are also in talks with leading Indian business houses to meet the criterion of “substantial ownership and control”. A foreign airlines can have a joint venture in India provided it has a local partner with at least 51% stake and effective control. Foreign carriers forming a consortium to make a bid for Air India will need to fulfil this rule. “The four airlines are in active consultation with us. Among the Indian players they are in touch with to form aconsortia is a medium-sized domestic airline. The head of an international airline is also eying the process with interest. A leading Indian industrial house is also in touch,” said a source, who did not wish to be identified.
The government has offered to sell 76% in the loss-making national carrier and will transfer a substantial chunk of its debt into a separate company.
When contacted, International Airlines Group (IAG) — parent company of British Airways — said: “IAG doesn’t comment on rumours or speculation.” SIA had also stated recently: “Our priority is the further expansion of Vistara (its JV with Tatas). However, we will keep our options open with respect to the proposed divestment of Air India.”
‘Airlines backing out want Air India for a song’
New Delhi: Airlines backing out of bidding for Air India are doing so to “degrade and devaluate” AI, the airline’s unions said in a joint statement on Wednesday. Till now, IndiGo and Jet Airways have said they will not bid for AI in the current terms of sale.
“The claimed probable buyers are using arm twisting tactics so as to put pressure on the government to change the terms and conditions (for) them (and ensure) AI is sold for a song,” said a “joint forum against privatisation” formed by 10 AI unions. TNN
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