A foreign company has shown interest in acquiring 49 per cent in state-run Air India. While the identity of the player has been kept under wraps, Aviation Secretary RN Choubey said the company has given an “unsolicited expression of interest for AI's airline arm.” Other foreign companies looking into AI's disinvestment process with interest include Singapore Airlines (SIA). Vistara, its JV airline with Tatas, has an “open mind” for the debt-laden AI.
Other biggie is Qatar Airways that wants to start a domestic carrier in India and has for long wanted to pick up a stake in IndiGo, which, has also extended a formal expression of interest for AI's airline arm. Meanwhile, a senior ministry official said, “As of now it will not be possible to say who this foreign player is and whether it is a foreign airline or some other company. We need to check with them if they are okay with their identity being revealed at this stage.”
Sources reveal that at the moment, Tata-SIA and IndiGo are the main contenders for AI's airline arm. Jet alongwith its international partners is waiting for details of what the government offers in AI divestment. An insider said, “Qatar Airways' preferred partner airline in India is IndiGo but the latter is adequately funded and has not said yes to the former's offer to pick up a stake in it. Qatar is facing its own issues with neighbours and India has not approved for its demand for enhanced flying rights. So as of now, the likelihood of Qatar Airways coming forward for AI are not too high.”
With a total of almost 28,000 employees, Air India has accumulated debt and losses of over £5 billion. The Centre intends to sell AI and AI Express together, with ground handling, MRO and Alliance Air to be sold as separate companies.
