Challenging the odds against Air India stake sale, the government, which is yet to receive any formal bid for debt-laden national carrier, said it hoped of getting a good response on the last day of the bidding process tomorrow.
Responding to the lukewarm interest in disinvestment of state-run Air India, the Civil Aviation Secretary R N Choubey said, "We expect good response before bid closes." He added that bids are expected to "pour in at the last hour."
Though the government had earlier extended the deadline for submission of Expression of Interest (EoI) from May 14 to May 31, the last date will not be moved further this time, the aviation secretary said.
Earlier this year, the government had floated Express of Interest (EoI) document asking potential buyers of Air India to submit their bids. The EoI document talks about selling 76 per cent stake in Air India, 100 per cent stake in Air India Express (AIXL) and 50 per cent stake in AISATS (ground handling subsidiary of AI).
On May 23, Choubey had said the highest bidder for the airline would be known by August-end. But, the highest bidder might not be the successful bidder, he said, adding the government intends to complete the disinvestment by year-end.
Significantly, he had said the government could decide against selling state-run Air India if it does not get "adequate" price for it.
"The government has the right to sell or not to sell Air India if the bid price is found to be inadequate," Choubey had told reporters.
"Though the transaction advisor (EY) will assess the enterprise value, the right price for the airline will be decided by us," he said. Asked about AI employees' union protests against the proposed sale, he said they were conscious of the fact that airlines would do well after privatisation.
31/05/18 Business Today
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Responding to the lukewarm interest in disinvestment of state-run Air India, the Civil Aviation Secretary R N Choubey said, "We expect good response before bid closes." He added that bids are expected to "pour in at the last hour."
Though the government had earlier extended the deadline for submission of Expression of Interest (EoI) from May 14 to May 31, the last date will not be moved further this time, the aviation secretary said.
Earlier this year, the government had floated Express of Interest (EoI) document asking potential buyers of Air India to submit their bids. The EoI document talks about selling 76 per cent stake in Air India, 100 per cent stake in Air India Express (AIXL) and 50 per cent stake in AISATS (ground handling subsidiary of AI).
On May 23, Choubey had said the highest bidder for the airline would be known by August-end. But, the highest bidder might not be the successful bidder, he said, adding the government intends to complete the disinvestment by year-end.
Significantly, he had said the government could decide against selling state-run Air India if it does not get "adequate" price for it.
"The government has the right to sell or not to sell Air India if the bid price is found to be inadequate," Choubey had told reporters.
"Though the transaction advisor (EY) will assess the enterprise value, the right price for the airline will be decided by us," he said. Asked about AI employees' union protests against the proposed sale, he said they were conscious of the fact that airlines would do well after privatisation.
31/05/18 Business Today
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