Saturday, July 29, 2017

Who will buy Air India?

Amidst speculation to find the right strategic investor for Air India, the flagship carrier of India, the government is set to consider bids from investors who have a suitable understanding of the aviation business.
While there was a primary prophesy of TATA Group reclaiming the airline once founded by JRD Tata in the 1930’s, Indigo as a carrier was also expressed their interest in the international operations of the airline.
The monumental loan that looms large on Air India remains the most significant challenge for an investor to digest before they plan to acquire stakes in the airline. On the other hand, the Government of India has announced that they are interested in selling all of Air India’s operations to one single investor and not carve out international or domestic operations separately.
In a podcast for the media, Rahul Bhatia, one of the founders of Indigo, earlier this month said, “Understandably, an acquisition of Air India’s international operations would require significant restructuring and management oversight, a task that we are quite comfortable taking on. However, we simply do not have the ability or for that matter, the desire to take on debts or liabilities that could not be supported by a standalone restructured international operation of Air India.”
28/07/17 Sudipto Roy/MIG