Thursday, September 14, 2017

Air India disinvestment: Govt seeks financial, legal advisors

The government of India on Thursday took another step in the process for disinvestment of debt-laden state-run carrier Air India as it invited applications from investment bankers, law firms and other entities to advise on the strategic stake sale of the flag carrier.
The government has decided on strategic disinvestment of loss-making Air India by early 2018, which is guzzling up taxpayers’ money ridden with inefficiencies and mismanagement. The national carrier, under intense competition from more efficient and often-cheaper private airlines, is reeling under a debt of over Rs 52,000 crore.
The government wants experts’ advice to assist the disinvestment process. According to PTI, applications have been sought for engaging up to two advisers and a legal adviser for the “strategic disinvestment of Air India and its subsidiaries/ joint venture”.
The Union Cabinet and the Air India Board had approved to sell the carrier in June. Officials want the process to offload all or parts of the airline by early 2018. A ministerial panel is working on the modalities.
14/09/17 Financial Express