New Delhi: Any Indian airline even if it has a net worth of zero or negative would be
allowed to make a bid for the national carrier Air India.
According to an official release, the government has started the process of selling its stake in the
debt ridden Air India inviting expression of interest.
Along with this the whole stake of Air India’s fully owned Air India Express would also be sold
off. Apart from this Air India’s 50 pc stake in the airport service provider company Air India
SATS would also belong to the investor. Those who are interested to bid for Air India need to
have a minimum net worth of Rs 3,500 crore.
However if any operator is operating commercial flights inside India on a regular basis he would
be eligible to making bids for Air India by making a consortium and he himself can be the main
player in the consortium, even if its net worth is zero of negative.
However, the combined net worth of the rest of the members of the consortium should be INR
3500 crore or more. Due to this provision any company such as Goair, Spicejet, Indigo, Vistara,
Air Asia India, Truejet can be a part of the bidding process.
Spicejet’s annual report placed the company’s networth at minus Rs 350.69 crores as on March
31, 2019. Despite this it can bid for Air India through the consortium route.
The primary information documents relating to Air India disinvestment had this condition that
every member of the consortium placing a joint bid should have an individual networth of Rs
350 crore.
However, those providing flight services in India have been exempted from this provision.
Another provision stipulates that only that main member of the consortium should have at least
26 pc stake in the consortium.
02/02/20 UNI
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allowed to make a bid for the national carrier Air India.
According to an official release, the government has started the process of selling its stake in the
debt ridden Air India inviting expression of interest.
Along with this the whole stake of Air India’s fully owned Air India Express would also be sold
off. Apart from this Air India’s 50 pc stake in the airport service provider company Air India
SATS would also belong to the investor. Those who are interested to bid for Air India need to
have a minimum net worth of Rs 3,500 crore.
However if any operator is operating commercial flights inside India on a regular basis he would
be eligible to making bids for Air India by making a consortium and he himself can be the main
player in the consortium, even if its net worth is zero of negative.
However, the combined net worth of the rest of the members of the consortium should be INR
3500 crore or more. Due to this provision any company such as Goair, Spicejet, Indigo, Vistara,
Air Asia India, Truejet can be a part of the bidding process.
Spicejet’s annual report placed the company’s networth at minus Rs 350.69 crores as on March
31, 2019. Despite this it can bid for Air India through the consortium route.
The primary information documents relating to Air India disinvestment had this condition that
every member of the consortium placing a joint bid should have an individual networth of Rs
350 crore.
However, those providing flight services in India have been exempted from this provision.
Another provision stipulates that only that main member of the consortium should have at least
26 pc stake in the consortium.
02/02/20 UNI
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