FILE – In this April 16, 2015 file photo, an Air India aircraft prepares to land at the Indira Gandhi International airport in New Delhi, India. India said Monday it plans to sell its entire stake in the national carrier Air India to shore up falling revenues and privatize the airline, after an initial attempt last year failed to attract a single bidder.
The government sweetened the deal earlier this year when it extended the bid deadline to Dec 14 from Oct 30, saying potential suitors will be allowed to decide how much of the flag carrier’s debt they want to take on as part of the transaction. Air India has been unprofitable since its 2007 merger with state-owned domestic operator Indian Airlines Ltd, and has relied on taxpayer money to keep flying, with the bailouts adding to the pressure on already strained government finances.
Malik said a financial partner had already been found, without disclosing that entity’s name. Employee participation has come from “the most junior employees to the most senior board members,” she said, without elaborating.“We are giving an open offer to employees of Air India to substantially own the airline,” he said on Monday. “Our group will invest the entire monies required for the airline, with no capital requirement from employees to contribute into the acquisition effort.