Monday, November 06, 2017

New Delhi seeks to dispose of Air India, Express together

The Indian government is looking to sell off both Air India and Air India Express as it seeks to wrap up the state-owned carrier's privatization by June 2018.

According to government sources who spoke to The Hindu, the Alternative Mechanism committee, an interministerial committee led by Finance Minister Arun Jaitley and tasked with overseeing Air India's disposal, is also looking to sell Alliance Air (India) (9I, Mumbai Int'l) (Air India's domestic unit) to a separate lot of buyers. The rationale behind the decision is that it would be easier to attract investors for Air India and Air India Express together given they both serve international markets.

Tata Group has already admitted its interest in Air India while IndiGo Airlines (6E, Delhi Int'l) has already expressed an interest in acquiring Air India's international operations inclusive of Air India Express.

Also involved in the sale process is groundhandling firm Air India Air Transport Service Ltd (AIATSL) and its MRO wing, Air India Engineering Services Ltd (AIESL).

According to the report, Turkey’s Celebi Aviation Holding and Delhi-based Bird Group have shown an interest in AIATSL while India’s oldest private MRO firm AirWorks is keen on buying AIESL.

Last month, Narendra Modi's government selected EY and investment bankers Rothschild as Air India's transaction advisors while legal firm Cyril Amarchand Mangaldas will act as legal advisors during the process.
05/11/17 ch-aviation