Friday, September 15, 2017

Govt to appoint banks and lawyers for Air India sale

Mumbai: The government has initiated the process for the sale of Air India, which is suffering huge losses and is debt-ridden, by inviting bids to appoint two financial advisors and one legal advisor for the privatisation of national carrier and its subsidiaries, reported a leading news agency.

Government is planning to offload all or parts of the airline by early 2018. Interested investment banks and law firms have until October 12 to pitch for their role in the privatisation process.

If one takes a look at the listed aviation players in India, there are three major players namely, SpiceJet, Interglobe Aviation and Jet Airways. Increasing crude oil prices is a big concern affecting the profitability for these companies.

However, strong rupee and passenger growth in the country is mildly offsetting the impact of crude oil price fluctuations. The domestic air traffic increased at a compounded annual growth rate of 20% in the last three years and is expected to maintain the trajectory in the next five years, believe experts.
14/09/17 IIFL