Days after Rashtriya Swayamsevak Sangh, or RSS, chief Mohan Bhagwat's remark that national carrier Air India should remain with an Indian after disinvestment, the government is already making conciliatory sounds. In an exclusive conversation with Business Today, Civil Aviation minister Suresh Prabhu said, "Air India disinvestment has not been handled at the ministry so far. We will definitely be interested in making sure that Air India remains in Indian hands only. Not more than 49 per cent will go to foreigners."
Informed sources also told Business Today that top RSS functionaries have also briefed other ministers and Prabhu's deputy about exactly what the ideological parent wants. The employee unions - including RSS affiliate Bharatiya Mazdoor Sangh, or BMS - opposed the disinvestment but neither RSS nor its economic think tank Swadeshi Jagran Manch, or SJM, dissented. SJM only opposed the 'strategic sale' mode -- it prefers equity sales through the stock market.
If the government pushes to ensure Indian ownership, it will be difficult to ensure the disinvestment of the ailing carrier. The government has bundled a 76 per cent stake in Air India (international operations) and Air India Express (low cost carrier) with 50 per cent of its stake in Air India Sats Airport Services (AISATS). There is hardly any Indian company interested in taking this deal. Foreign players such as International Airlines Group or IAG (owners of British Airways), Singapore Airlines, Lufthansa, Etihad, along with a few funds including IFC, Warburg Pincus and GIC, had shown interest. They would require local partners to clinch the deal. Some foreign players are already backing out. The IAG denied any interest, calling it a risk at this stage.
20/04/18 Anilesh S Mahajan/Business Today
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Informed sources also told Business Today that top RSS functionaries have also briefed other ministers and Prabhu's deputy about exactly what the ideological parent wants. The employee unions - including RSS affiliate Bharatiya Mazdoor Sangh, or BMS - opposed the disinvestment but neither RSS nor its economic think tank Swadeshi Jagran Manch, or SJM, dissented. SJM only opposed the 'strategic sale' mode -- it prefers equity sales through the stock market.
If the government pushes to ensure Indian ownership, it will be difficult to ensure the disinvestment of the ailing carrier. The government has bundled a 76 per cent stake in Air India (international operations) and Air India Express (low cost carrier) with 50 per cent of its stake in Air India Sats Airport Services (AISATS). There is hardly any Indian company interested in taking this deal. Foreign players such as International Airlines Group or IAG (owners of British Airways), Singapore Airlines, Lufthansa, Etihad, along with a few funds including IFC, Warburg Pincus and GIC, had shown interest. They would require local partners to clinch the deal. Some foreign players are already backing out. The IAG denied any interest, calling it a risk at this stage.
20/04/18 Anilesh S Mahajan/Business Today
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