Government of India has decided to sell 76% stake in Air India to investors. The Air India, Air India Express and 50% stake in Air India SATS Airport Services will sold as a combined entity.
Indian and Foreign companies can bid for the stake as long as the company’s minimum net worth is Rs50 billion ($750 million) and demonstrate profitability over the last three financial years, says the document.
The buyer will incur the losses of Rs.50k Crore debt with Rs.8816 Crore current liabilities including staff. As of 1 December 2017, Air India has 11,214 permanent employees and 7486 casual staff.
Indian carriers with zero or negative net worth will also be allowed to participate in the process, provided they form a consortium with other partners and hold a 51% stake in the consortium.
The local airlines, IndiGo, Jet Airways, SpiceJet and Vistara have shown interest, in which only IndiGo’s is worth of Rs38 billion whereas others have negative net worth, following several years of retained losses.
14 May 2018 is the deadline to submit expression of interest, and qualifying bidders will be announced on 28 May.