Air India weighs 15% selloff via IPO

Calcutta: The National Aviation Company of India Ltd (Nacil), the state-owned entity which has been formed with the merger of Air India and Indian, is considering a proposal to offload 15 per cent of its equity through an initial public offering (IPO).
Nacil chairman V. Thulasidas said the government would take a decision on the flotation after all the modalities for the merger are completed. The Union cabinet had cleared the proposal for merger on March 1 but it is yet to be formalised.
The IPO is part of a two-phased financial recast of the airline. Before the IPO, the company will offer employee stock options to its staff, Thulasidas said. The merged airline will have 34,000 employees.
Thulasidas said the new state-owned airline would be called Air India for both domestic and overseas operations.
Alliance Air, the wholly owned subsidiary of Indian which flies to small towns, will become a part of Air India.
The airline is expanding its fleet and has initiated a process to be a member of the Star Alliance, the oldest airline network which has 17 full members and 15 regional members.
08/10/07 The Telegraph

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Categories: Air India - International Oct 2007, Air india Budget Oct 2007, Air India Domestic Oct 2007, Air India Regional Oct 2007, NACL Oct 2007