New Delhi: Jayant Sinha, Minister of State for Civil Aviation, said on Friday that a private bidder will be allowed to pick up 51 per cent or more stake in Air India.
“We are privatising Air India. The term has been used in the Budget which means more than 51 per cent stake of Air India is going to be transferred into the private sector. The fact of the matter is we will be transferring control to the private sector, therefore, the government stake will be 49 per cent or less,” the Minister said.
The Alternate Mechanism of Ministers will have to take a call whether there should be a 100 per cent stake sale of Air India.
On the issue of whether a foreign investor holding a 51 per cent stake in Air India would mean that that the Maharaja would cease to be an Indian carrier, the Minister said: “I do not know the exact IATA definition of a national carrier. I will not speak on this issue. But Air India will be transferred to the private sector. Just as British Airways, American Airlines, Lufthansa and Qantas are in the private sector, Air India will also be in private sector.”
The Minister added the government is looking at putting up four different entities – the airline, Air India Express and Sats (which will be one equity) the engineering company, the ground-handling company and Alliance.
“A bidder will be allowed to bid for any one or all four,” he said.
02/02/18 Business Line
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“We are privatising Air India. The term has been used in the Budget which means more than 51 per cent stake of Air India is going to be transferred into the private sector. The fact of the matter is we will be transferring control to the private sector, therefore, the government stake will be 49 per cent or less,” the Minister said.
The Alternate Mechanism of Ministers will have to take a call whether there should be a 100 per cent stake sale of Air India.
On the issue of whether a foreign investor holding a 51 per cent stake in Air India would mean that that the Maharaja would cease to be an Indian carrier, the Minister said: “I do not know the exact IATA definition of a national carrier. I will not speak on this issue. But Air India will be transferred to the private sector. Just as British Airways, American Airlines, Lufthansa and Qantas are in the private sector, Air India will also be in private sector.”
The Minister added the government is looking at putting up four different entities – the airline, Air India Express and Sats (which will be one equity) the engineering company, the ground-handling company and Alliance.
“A bidder will be allowed to bid for any one or all four,” he said.
02/02/18 Business Line
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