Days after domestic airlines like IndiGo and Jet Airways fell out of the running to buy Air India after a disagreement with the terms of sale, worldwide airlines such as British Airways and Singapore Airlines have shown interest in buying the Indian state-run carrier, Fortune India reported citing a senior Air India official. Three companies who were considered potential bidders for the government's debt-ridden national carrier have already backed out, citing major discrepancies in the conditions that come along with the acquisition. But the government has stipulated the winning bidder can not merge the airline with existing businesses as long as the government holds a stake. There were quite a few aviation players who were interested before the government put out the detailed proposal that included Tata as well. He said the main challenges are the debt, the government's residual 24 percent stake and the workforce, adding that the government should consult with potential bidders and simplify the terms. As far as Tata Group is concerned, it does now see "how a deal would be workable" under the current terms of the sale, said the Reuters report, quoting an official. The proposed transaction would involve Air India, its low-priced arm Air India Express and Air India SATS Airport Services, which is an equal joint venture between the national airline and Singapore-based SATS. International Airlines Group (IAG), the parent company of British Airways, however, refused to comment over the issue when approached by the Times of India. The buyer would have management control and gain access to more than 2,500 global slots and over 3,700 domestic slots. While the government has not set any minimum price, the entire sale could fetch between 80 billion and 100 billion rupees ($1.2 billion to $1.5 billion), said two banking sources who were not directly involved in the deal. The same source mentioned that the airline had too much debt and that the conditions provide no clarity on what a buyer could do to make the airline profitable again. Previous attempts to sell off the airline have floundered, due to political and union opposition and a lack of potential buyers.
14/04/18 Newburgh Journal
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14/04/18 Newburgh Journal
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